Rebecca holds 100 shares of Gotchas stock that she purchased for $4,800 several years ago....
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Rebecca holds 100 shares of Gotchas stock that she purchased for $4,800 several years ago. In a merger of Gotchas into Solis, Inc., Rebecca exchanges her 100 Gotchas shares for 1,000 Solis shares and $960. Gotchas is valued at $105.60 per share and Solis at $9.60 per share.
a. What is Rebecca's realized and recognized gain/loss from the reorganization? Assuming that this exchange qualifies for tax-free treatment under 368, Rebecca's realized gain is $fill in the blank 1, her recognized gain is $fill in the blank 2.
b. What is Rebecca's basis in her Solis stock? $fill in the blank 3
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