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Zebra Inc. buys 100% of Tiger Inc. for $100,000 in exchange for Zebra stock. Tiger Inc. assets have a basis of $50,000. Drew owns 75%

Zebra Inc. buys 100% of Tiger Inc. for $100,000 in exchange for Zebra stock. Tiger Inc. assets have a basis of $50,000. Drew owns 75% of Zebra Inc. stock. How much in tax will Drew have to pay for the transaction?

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$0

Drew will have to pay tax on $100,000

Drew will have to pay tax on $75,000

Drew will have to pay tax on $50,000

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