Bronx Corporation acquires 100% of Aladin Corporation's stock from Aladin's shareholders for $600,000 cash. Aladin Corporation...
Bronx Corporation acquires 100% of Aladin Corporation's stock from Aladin's shareholders for $600,000 cash. Aladin Corporation has assets with a $700,000 adjusted basis and a $900,000 FMV. The assets are subject to $300,000 in liabilities. Aladin Corporation shareholders purchased their stock six years ago for $350,000. Bronx Corporation's basis in the Aladin Corporation stock is
A) $500,000.
B) $300,000.
C) $800,000.
D) $600,000.
Homework Answers
| According to Section 1012, the basis for stock is the purchase cost of stock. |
| Bronx Corporation's basis in the Aladin Corporation stock is $600,000 |
| Option D $600,000 is correct |
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Bronx Corporation acquires 100% of Aladin Corporation's stock
from Aladin's shareholders for $600,000 cash. Aladin Corporation...
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