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:

Electrical Signal

An electrical signal is a current or electromagnetic field used to convey data from one system or network to another, often varying in voltage to represent information.

Chemical Signal

A molecule released by cells that carries information to other cells, often triggering a response or action in the receiving cells.

Neurotransmitter Uptake

The process by which neurotransmitters are taken back into the synaptic vesicles of a neuron after the completion of a neural impulse.

Cocaine Molecule

A complex organic compound that acts as a powerful stimulant in humans, structurally characterized by its molecular formula.