Carol Owns Target Corporation Stock Having an Adjusted Basis of $41,000

question 88

Essay

Carol owns Target Corporation stock having an adjusted basis of $41,000. As part of a Type C tax-free reorganization involving Revbo and Target Corporations, Carol exchanges her Target stock for $42,000 of Revbo stock and Revbo securities having a face amount and FMV of $8,000. What is Carol's basis in the Revbo stock?

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Definitions:

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against infections, diseases, and other harmful invaders.

Endocrine System

A network of glands in the body that produce and release hormones directly into the blood to regulate the body's growth, metabolism, and sexual development and function.

Sympathetic Nervous System

A component of the autonomic nervous system that activates the body's fight or flight response in preparation for action.

B Lymphocytes

A type of white blood cell that plays a critical role in the immune system by producing antibodies to fight infections.