Zebra Inc. buys 100% of Tiger Inc. for $100,000 in exchange for Zebra stock. Tiger...
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Accounting
Zebra Inc. buys 100% of Tiger Inc. for $100,000 in exchange for Zebra stock. Tiger Inc. assets have a basis of $50,000. Drew owns 75% of Zebra Inc. stock. How much in tax will Drew have to pay for the transaction?
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$0
Drew will have to pay tax on $100,000
Drew will have to pay tax on $75,000
Drew will have to pay tax on $50,000
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