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:

Sales

The total amount of goods or services sold over a specific period of time, generating revenue for a business.

Accounts Payable

Liabilities owed by a company to creditors for goods and services received but not yet paid for.