David Owns 600 Shares of K Corporation Stock When K

question 57

Multiple Choice

David owns 600 shares of K Corporation stock when K is merged into Parent Corporation.David receives 500 shares of Parent Corporation stock (fair market value = $10,500) and $500 cash in exchange for his K Corporation stock.David's K stock had a basis of $8,000 and an $11,000 fair market value.What is David's realized and recognized gain, respectively?

• A)$3,000 and $3,000
• B) $3,000 and $2,500
• C)$2,500 and $500
• D)$3,000 and $500

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Definitions:

Antigenic Determinants

Specific parts of a molecule that are recognized by the immune system, critical for the specificity of immune responses.

Epitopes

Specific parts of an antigen that are recognized by the immune system, specifically by antibodies, B cells, or T cells.

Lymphocytes

A subtype of white blood cells involved in the immune response, including B cells, T cells, and natural killer cells.

Major Histocompatibility Complexes

A set of cell surface proteins important for the immune system to recognize foreign molecules, playing a critical role in antigen presentation.