Business, 02.06.2021 20:40 nataliemoore1974
Mrs. Lindt exchanged 212 shares of Nipher common stock for 773 shares of Newland common stock. Her basis in the Nipher stock was $49,200, and the fair market value of the Newland stock was $138,000. Which of the following statements about the exchange is true?
a. Mrs. Lindt’s basis in her Newland stock is $138,000.
b. Mrs. Lindt recognizes no gain on the exchange because she did not receive any cash.
c. If the exchange is pursuant to a reorganization of Nipher and Newland, Mrs. Lindt recognizes no gain.
d. None of the above is true.
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Mrs. Lindt exchanged 212 shares of Nipher common stock for 773 shares of Newland common stock. Her b...
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