75) Acquiring Corporation acquires all of the assets of Target Corporation in exchange for $3,000,000 of Acquiring common stock, and the assumption of $2,000,000 of Target’s liabilities. The assets had a $2,300,000 adjusted basis to Target. Target’s sole shareholder, Paula, had a $1,000,000 adjusted basis for her stock. Target Corporation had $600,000 of E&P on the acquisition date. Paula receives all of the Acquiring common stock in liquidation of Target. What are the tax consequences of the acquisition to: Acquiring, Target, and Paula?
76) Zebra Corporation transfers assets with a $120,000 basis and a $250,000 FMV to Hat Corporation for common stock worth $200,000 and cash of $50,000. The exchange qualifies as a tax-free reorganization. Zebra Corporation distributes the stock and cash to its shareholders pursuant to its liquidation. How much gain must Zebra Corporation recognize?
77) Brad exchanges 1,000 shares of Goodyear Corporation stock having a $15,000 basis for Atlas Corporation stock having a $25,000 FMV as part of a Type A tax-free reorganization. Brad also receives $6,000 cash as part of the reorganization. How much gain must Brad recognize?
78) Martha owns Gator Corporation stock having an adjusted basis of $21,000. As part of a tax-free reorganization involving Gator and Baker Corporations, Martha exchanges her Gator stock for $18,000 of Baker stock and $6,000 (face amount and FMV) of Baker securities. What is Martha’s basis in the Baker stock?
79) Marty is a party to a tax-free reorganization. He has a basis of $22,000 in his Van Corporation stock that has a FMV of $35,000. Marty exchanges the Van stock for Young
Corporation stock worth $29,000 and Young securities with a face amount of $7,000 and a FMV of $6,000. What is Marty’s basis in the Young securities?
80) Acme Corporation acquires Fisher Corporation’s assets in a Type A reorganization for $800,000 of Acme’s nonvoting preferred stock and $200,000 (face amount and FMV) of securities. The assets have an adjusted basis of $600,000 and a FMV of $1,500,000. In addition, Acme Corporation assumes $500,000 of Fisher’s liabilities. At the time of the transfer, Acme’s E&P is $400,000. Fisher distributes the stock and securities to its sole shareholder Barbara for all of her Fisher stock. After the reorganization, Barbara owns 25% of Acme’s stock. Barbara has an adjusted basis of $400,000 in her Fisher stock. What is Barbara’s basis for her Acme stock?
