# Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $667,500 plus $667,500 in cash. Simone's tax basis in the Purple stock was $263,000. What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives

1 answer

###### Question:

Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $667,500 plus $667,500 in cash. Simone's tax basis in the Purple stock was $263,000. What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives

## Answers

Answer: $667,500 gain recognized and a basis in Plum stock of $263000Explanation:The amount of gain that Simone recognize in the exchange and her basis in the Plum stock she receives will be:Gain realized = $667500 + $667500 - $263000 = $1598000Cash Received = $667500The Gain recognized will be the lesser amount between the gain realized and cash received which will be $667500.Therefore, the answer is $667,500 gain recognized and a basis in Plum stock of $263000

#### Similar Solved Questions

2 answers

### Give brainliest answer Which statement best describes the structure of “I Hear America Singing”? It allows the author to describe several periods of time at once. It allows the author to express his thoughts without rules. It allows the author to focus on a single subject throughout the poem. It allows the author to express his thoughts within a set of strict rules.

give brainliest answer Which statement best describes the structure of “I Hear America Singing”? It allows the author to describe several periods of time at once. It allows the author to express his thoughts without rules. It allows the author to focus on a single subject throughout the poem. I...

1 answer

### U Question 3 1 pts 3 and -3 are absolute values O positive O opposites O negative

U
Question 3
1 pts
3 and -3 are
absolute values
O positive
O opposites
O negative...

1 answer

### Complete the equation to show the relationship between the number of buses, x, and the number of people that can be transported, y. At this rate, how many people can be transported on 40 buses?

Complete the equation to show the relationship between the number of buses, x, and the number of people that can be transported, y. At this rate, how many people can be transported on 40 buses?...

1 answer

### A far-sighted student has a near point of 309 cm. Calculate the focal length of the glasses needed so the near point will be normal (25 cm). Neglect the space between the eyes and the eye-glasses. Answer in units of cm.

A far-sighted student has a near point of 309 cm. Calculate the focal length of the glasses needed so the near point will be normal (25 cm). Neglect the space between the eyes and the eye-glasses. Answer in units of cm....

1 answer

### Charles’s law states that if the pressure of a dry gas is held constant, then the volume V of the gas and its temperature T, measured in degrees Kelvin, satisfy the relationship V=cT, where c is a constant. Which of the following best describes the relationship between the rate of change, with respect to time t, of the volume and the rate of change, with respect to time t, of the temperature? a) dV/dt = T dc/dt b) dV/dt = c * dT/dt c) dV/dT = c d) 1 = c * dT/dV

Charles’s law states that if the pressure of a dry gas is held constant, then the volume V of the gas and its temperature T, measured in degrees Kelvin, satisfy the relationship V=cT, where c is a constant. Which of the following best describes the relationship between the rate of change, with res...

1 answer

### A magazine contains 7/12 articles the rest are adverts. If there are 204 pages in the magazine how many pages are adverts? Need answer ASAP!!!

A magazine contains 7/12 articles the rest are adverts. If there are 204 pages in the magazine how many pages are adverts?
Need answer ASAP!!!...

1 answer

### The diameter of a circle is 10 meters. What is the area, in square meters , of the circle

The diameter of a circle is 10 meters. What is the area, in square meters , of the circle...

1 answer

### An oil company conducts a geological study that indicates that an exploratory oil well should have a 20% chance of striking oil. assuming independence, what is that probability that the third strike comes on the seventh well drilled

an oil company conducts a geological study that indicates that an exploratory oil well should have a 20% chance of striking oil. assuming independence, what is that probability that the third strike comes on the seventh well drilled...

1 answer

### How does Amir's past come back to him during his wedding? What is the significance of these fleeting thoughts for Amir and for the primary conflict of the novel?

How does Amir's past come back to him during his wedding? What is the significance of these
fleeting thoughts for Amir and for the primary conflict of the novel?...

1 answer

### A high-pass filter consists of a 1.66 μF capacitor in series with a 80.0 Ω resistor. The circuit is driven by an AC source with a peak voltage of 5.10 V . Part A What is the crossover frequency fc? Part B What is VR when f=1/2fc? Part C What is VR when f =fc? Part D What is VR when f =2fc?

A high-pass filter consists of a 1.66 μF capacitor in series with a 80.0 Ω resistor. The circuit is driven by an AC source with a peak voltage of 5.10 V . ...

1 answer

### Which of the following is NOT correct?Select one:a. Finance companies are not allowed to accept deposits.b. Finance companies are supervised by ASIC.c. Building societies are supervised by APRA.d. Credit unions are not allowed to accept deposits from retail investors.

Which of the following is NOT correct?Select one:a. Finance companies are not allowed to accept deposits.b. Finance companies are supervised by ASIC.c. Building societies are supervised by APRA.d. Credit unions are not allowed to accept deposits from retail investors....

1 answer

### A piston-cylinder device contains 0.58 kg of steam at 300°C and 0.5 MPa. Steam is cooled at constant pressure until one-half of the mass condenses. Use data from the steam tables. Determine (a) the final temperature; (b) the volume change; and (c) show the process on a T-V diagram with respect to saturation lines.

A piston-cylinder device contains 0.58 kg of steam at 300°C and 0.5 MPa. Steam is cooled at constant pressure until one-half of the mass condenses. Use data from the steam tables.
Determine (a) the final temperature; (b) the volume change; and (c) show the process on a T-V diagram with respect to ...

2 answers

### What is the connection between crime and unequal access to basic services

what is the connection between crime and unequal access to basic services...

1 answer

### Q 19.23: A proton is initially moving at 3.0 x 105 m/s. It moves 3.5 m in the direction of a uniform electric field of magnitude 120 N/C. What is the kinetic energy of the proton at the end of the motion

Q 19.23: A proton is initially moving at 3.0 x 105 m/s. It moves 3.5 m in the direction of a uniform electric field of magnitude 120 N/C. What is the kinetic energy of the proton at the end of the motion...

1 answer

### Henrietta is going off to her physics class, jogging down the sidewalk at a speed of 3.20 m/s. Her husband Bruce suddenly realizes that she left in such a hurry that she forgot her lunch of bagels, so he runs to the window of their apartment, which is a height 43.9 m above the street level and directly above the sidewalk, to throw them to her. Bruce throws them horizontally at a time 5.00 s after Henrietta has passed below the window, and she catches them on the run. You can ignore air resistanc

Henrietta is going off to her physics class, jogging down the sidewalk at a speed of 3.20 m/s. Her husband Bruce suddenly realizes that she left in such a hurry that she forgot her lunch of bagels, so he runs to the window of their apartment, which is a height 43.9 m above the street level and direc...

1 answer

### What do you think has been the greatest contributing factor to the secession of South Carolina in 1860? There is no right or wrong answer, but you need to be able to defend your answer in an academic response.

What do you think has been the greatest contributing factor to the secession of South Carolina in 1860? There is no right or wrong answer, but you need to be able to defend your answer in an academic response....

1 answer

### Terri has a tepee. The tepee has a diameter of 9 feet and a height of 6 feet. What is the volume of the tepee to the nearest foot?

Terri has a tepee. The tepee has a diameter of 9 feet and a height of 6 feet. What is the volume of the tepee to the nearest foot?...