Question - Rebecca holds 100 shares of Gotchas stock that she purchased for $1,200 several years ago. In a merger of Gotchas into Solis, Inc., Rebecca exchanges her 100 Gotchas shares for 1,000 Solis shares and $250. Gotchas is valued at $135 per share and Solis at $13.25 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 $, her recognized gain is $.
b. What is Rebecca's basis in her Solis stock?