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Explain why the shareholder’s basis in the new stock received in a corporate reorganization is the...

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Accounting

Explain why the shareholder’s basis in the new stock received ina corporate reorganization is the value of the stock received lessthe postponed gain.

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Solution The corporate reorganization is done in case of capital reconstruction of the company The excessive loss and debit balance of the capital is restructuring through corporate reorganization It is done by reducing the value of the share capital and other capital sources and the    See Answer
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