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15 February, 03:51

In a qualifying reorganization, Currant Corp. exchanges $700,000 of its own stock and $50,000 ($35,000 basis) of Pear Corp. stock for all of the assets of Raisin Corp., which have a value of $900,000 and a basis of $600,000. Raisin Corp. retains the stock in Pear Corp., which is a party unrelated to the reorganization. What amount of gain or loss will Raisin Corp. recognize as a result of this reorganization?

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  1. 15 February, 06:34
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    The amount of gain that Raisin Corp. will recognize as a result of this reorganization is $50,000.

    Explanation:

    Eventually Raisin Corp. will recognize a $50,000 gain as a result of this reorganization.

    Therefore, The amount of gain that Raisin Corp. will recognize as a result of this reorganization is $50,000.
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Home » Business » In a qualifying reorganization, Currant Corp. exchanges $700,000 of its own stock and $50,000 ($35,000 basis) of Pear Corp. stock for all of the assets of Raisin Corp., which have a value of $900,000 and a basis of $600,000. Raisin Corp.
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