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38. Navatek Corporation adopts a plan of reorganization and exchanges 1,500 shares of its voting stock...

38. Navatek Corporation adopts a plan of reorganization and exchanges 1,500 shares of its voting stock and $75,000 in cash for Santos Corporation's assets having a $300,000 adjusted basis and a $375,000 FMV. Santos Corporation is subsequently liquidated. What is Navatek Corporation's basis in the assets acquired in the exchange?

A) $225,000

B) $250,000

C) $300,000

D) $375,000

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Answer #1

Ans The correct option for the answer is option C i.e. $300,000

Since it is given that Santos corporation is subsequently liquidated and the shares he exchanges is 1500 Having adjusted Value of $300,000 and assets acquired are $300,000.

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