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Leonore Exchanges 5,000 Shares of Pelican, Inc

question 4

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Leonore exchanges 5,000 shares of Pelican, Inc., stock for 2,000 shares of Blue Heron, Inc., stock.Leonore's adjusted basis for the Pelican stock is $300,000 and the fair market value of the Blue Heron stock is $350,000.Leonore's recognized gain is $0, and her adjusted basis for the Blue Heron stock is $300,000.


Definitions:

Acupressure

A traditional Chinese medicine technique similar to acupuncture but uses finger pressure on specific points on the body to relieve pain and stress.

Ayurvedic Medicine

An ancient system of medicine originating in India, focused on balance among body, mind, and spirit to promote well-being and health through natural therapies.

Traditional Chinese Medicine

A holistic and ancient system of health care originating from China, employing techniques such as herbal medicine, acupuncture, and Tai Chi to treat various conditions.

Acupuncture

A form of traditional Chinese medicine that involves inserting thin needles into specific points on the body to relieve pain or treat various diseases.

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