Ask Question
6 November, 17:40

Hosha exchanges all of her leaf stock for petal stock plus $5,000 cash. the exchange is pursuant to a tax-free reorganization. hosha paid $25,000 for the leaf stock five years ago. the petal stock received by hosha has an $18,000 fair market value. if an amount is zero, enter "0".

a. what is hosha's realized and recognized gain/loss from the reorganization

+1
Answers (1)
  1. 6 November, 18:56
    0
    Her realized loss is 18K-5K=13K-25K=-12K

    her recognized loss is - 5K

    her postponed loss is - 12K - (5) = - 7k

    basis in petal stock = 18K - (7) = 25K
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Hosha exchanges all of her leaf stock for petal stock plus $5,000 cash. the exchange is pursuant to a tax-free reorganization. hosha paid ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers