Ask Question
1 April, 10:03

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

+3
Answers (1)
  1. 1 April, 10:40
    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?
Find 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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers