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  3. in a reorganization, current corp. exchanges $850,

In a reorganization, Current Corp. exchanges $850,000 of its own stock and $50,000 ($35,000 basis)...

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Accounting

In a reorganization, Current Corp. exchanges $850,000 of its own stock and $50,000 ($35,000 basis) of Lately Corp. stock for all of the assets of Eventually Corp., which have a basis of $600,000. Eventually Corp. retains the stock in Lately Corp., which is a party unrelated to the reorganization. What gain or loss will Eventually Corp. recognize as a result of this reorganization?

A. $50,000 gain

B. $250,000 gain

C. $50,000 loss

D. neither gain nor loss

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