Rebecca holds 100 shares of Gotchas stock that she purchased for $1,500 several years ago. In...
Rebecca holds 100 shares of Gotchas stock that she purchased for $1,500 several years ago. In a merger of Gotchas into Solis, Inc., Rebecca exchanges her 100 Gotchas shares for 1,000 Solis shares and $300. Gotchas is valued at $33.00 per share and Solis at $3.00 per share.
What is Rebecca’s realized and recognized gain/loss from the
reorganization?
Assuming that this exchange qualifies for tax-free treatment under
§ 368, Rebecca’s realized gain is $________
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Rebecca holds 100 shares of Gotchas stock that she purchased for
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