chapter 17 problems - 29) a) 400,000 of the common stock...

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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 100 recognized basis in new bond 800 28) a) Brad will report the cash sale and recognize a gain if the cash received exceeded the basis in his business b) The exchange of stock should be tax free unless the principal amount of the tax received exceeds the principal amount of the tax given c) The exchange of stock should be tax free unless the principal amount of the tax received exceeds the principal amount of the tax given d) he should review the tax consequences of the transaction for the 2 years
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Unformatted text preview: 29) a) 400,000 of the common stock and 80,000 or the preffered stock b) no it will not c) yes the rules will still be applied 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 bas 200,000 assets wor 800,000 liabilities 350,000 a) 450,000 b) 250,000 c) 800,000 d) basis is 2000, and holding period 3years 37) a,c,d,f,g 46) a) The control requirement is not met because its less than 80%, therefore it will not be violated b) No tax consequences c) yes it qualifies as a type B d) yes it qualifies as a type B...
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