chapter 17 problems solution - d) no e) yes f) the basis of...

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Chapter 17 Problems 27, 28, 29, 31, 37, 46 Initial Submission 27) Type A r bond basis 800 principal 900 new convertible bond 1,200 new convertible bond principal 1,000 gain 400 realized recognized 120 recognized basis in new bond 920 28) a) Brad will report the cash sale and recognize a gain if the cash received exceeded the basis in his business b) same as a, and he will have a fair market value basis in his new stock c) same as b and the substance of the transaction is that he sold his business for marketable stock d) type b reorganization 29) a) 400,000 of the common stock and 80,000 or the preffered stock b) no it will not c) A prompt liquidation recasts a type B as a type C reorganization
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Unformatted text preview: d) no e) yes f) the basis of the property acquired will equal the transferor's basis increased by any gain recognized to the transferor 31) assets basi 200,000 assets wort 800,000 liabilities 350,000 a) 600,000 b) 150,000 c) boots basis 200,000 and gain re 150,000 d) basis 1000 37) a,b,c,d 46) a) The control requirement is not met because its less than 80%, therefore it will not be violated b) the exchange of debentrues is a taxable exchange and gain or loss should be recognized c) yes it qualifies as a type B d) yes it qualifies as a type B...
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This note was uploaded on 03/05/2012 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.

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