When you see this question please finish it in 1 hour and leave your p@yp@l account in the answer as well, I know it's a long problem so I would like to show my appreciation by sending some funds to you if you answer this correctly and thoroughly thank you.
Your cousin, Claude, owns a chain of bakeries in Northern California. The bakeries are owned under the umbrella of Claudine Inc., a publicly held corporation. Portos Inc., shares of which is also publicly held, is interested in a transaction to merge Claudine into Portos, in order for Portos to facilitate its expansion in Northern California using already established bakery outlets. Claude owned 100 shares of Claudine Inc. which was surrendered in the merger. How much gain does Claude REALIZE and RECOGNIZE under the following circumstances? What is Claude's basis in any Portos Inc. shares received? A) Claude's basis for Claudine Inc. shares was $50,000. He would receive 200 shares of Portos Inc. worth $200,000. (4 points) Per which IRC Code Section is gain recognizedot recognized? (1 bonus point.) Per which IRC Code Section is basis in Portos stock determined? (1 bonus point.) B) It's been a month since the initial negotiations open with Portos. To sweeten the deal and incentivize Claude, in addition to 200 shares of Portos, Portos will throw in $20,000 cash. Assume the cash is not equivalent to a dividend. (4 points) C) Assume now that Claude's basis for Claudine Inc. shares was $180,000. He's getting the same deal from Portos as in Question B. (4 points) D) Assume now that Claude's basis for Claudine Inc. shares was $250,000. He's getting the same deal from Portos as in Question B. (4 points) Per which IRC Code Section is gain recognizedot recognized? (1 bonus point.) E) Returning to the scenario in Question A. Assume now Claude is surrendering his 100 shares of Claudine Inc. and $10,000 of promissory note that Claudine Inc. owed Claude. Claude would receive 200 shares of Portos Inc. worth $200,000. In addition, a note from Portos due in twenty years, with a principal amount and present value of $20,000. Refer to IRC Sec 356(d)(2)(B) if necessary. (4 points) Your cousin, Claude, owns a chain of bakeries in Northern California. The bakeries are owned under the umbrella of Claudine Inc., a publicly held corporation. Portos Inc., shares of which is also publicly held, is interested in a transaction to merge Claudine into Portos, in order for Portos to facilitate its expansion in Northern California using already established bakery outlets. Claude owned 100 shares of Claudine Inc. which was surrendered in the merger. How much gain does Claude REALIZE and RECOGNIZE under the following circumstances? What is Claude's basis in any Portos Inc. shares received? A) Claude's basis for Claudine Inc. shares was $50,000. He would receive 200 shares of Portos Inc. worth $200,000. (4 points) Per which IRC Code Section is gain recognizedot recognized? (1 bonus point.) Per which IRC Code Section is basis in Portos stock determined? (1 bonus point.) B) It's been a month since the initial negotiations open with Portos. To sweeten the deal and incentivize Claude, in addition to 200 shares of Portos, Portos will throw in $20,000 cash. Assume the cash is not equivalent to a dividend. (4 points) C) Assume now that Claude's basis for Claudine Inc. shares was $180,000. He's getting the same deal from Portos as in Question B. (4 points) D) Assume now that Claude's basis for Claudine Inc. shares was $250,000. He's getting the same deal from Portos as in Question B. (4 points) Per which IRC Code Section is gain recognizedot recognized? (1 bonus point.) E) Returning to the scenario in Question A. Assume now Claude is surrendering his 100 shares of Claudine Inc. and $10,000 of promissory note that Claudine Inc. owed Claude. Claude would receive 200 shares of Portos Inc. worth $200,000. In addition, a note from Portos due in twenty years, with a principal amount and present value of $20,000. Refer to IRC Sec 356(d)(2)(B) if necessary. (4 points)
