In a reorganization, Current Corp. exchanges $850,000 of its own stock and $50,000 ($35,000 basis)...
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In a reorganization, Current Corp. exchanges $850,000 of its own stock and $50,000 ($35,000 basis) of Lately Corp. stock for all of the assets of Eventually Corp., which have a basis of $600,000. Eventually Corp. retains the stock in Lately Corp., which is a party unrelated to the reorganization. What gain or loss will Eventually Corp. recognize as a result of this reorganization?
A. $50,000 gain
B. $250,000 gain
C. $50,000 loss
D. neither gain nor loss
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