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Pursuant to a corporate reorganization,
Marcia exchanged stock she owned in Casey
Corp. for stock in Mills Corp. valued at
$70,000, plus a Mills Corp. bond worth
$9,000 (face amount of $10,000). Marcia
had paid $71,000 for her stock in Casey 18
months ago.
a.
What is the amount and character of
Marcias recognized gain?
b.
What is Marcias basis for her Mills
Corp. bond?
c.
What is Marcias basis for her Mills
Corp. stock?
Answer & Explanation
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