Acme Corporation Acquires Fisher Corporation's Assets in a Type a Reorganization

question 4

Multiple Choice

Acme Corporation acquires Fisher Corporation's assets in a Type A reorganization for $800,000 of Acme's nonvoting preferred stock and $200,000 (face amount and FMV) of securities. The assets have an adjusted basis of $600,000 and an FMV of $1,500,000. In addition, Acme Corporation assumes $500,000 of Fisher's liabilities. At the time of the transfer, Acme's E&P is $400,000. Fisher distributes the stock and securities to its sole shareholder Barbara for all of her Fisher stock. After the reorganization, Barbara owns 25% of Acme's stock. Barbara has an adjusted basis of $400,000 in her Fisher stock. Barbara's basis for her Acme securities is

• A)0)
• B)$200,000.
• C)$350,000.
• D)$400,000.

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Definitions:

Heterozygote Advantage

Occurs when selection favors heterozygote individuals over either the dominant homozygote or the recessive homozygote.

Sickle-Cell Anemia

A genetic blood disorder caused by the presence of an abnormal form of hemoglobin, leading to distorted (sickle-shaped) red blood cells.

Hardy-Weinberg Equation

The Hardy-Weinberg Equation is a mathematical formula used to predict the genetic variation and allele frequencies within a non-evolving population, assuming no mutation, selection, or migration.

Allele Frequency

The proportion of a specific allele (gene variant) at a given locus within a population, shown as either a fraction or a percentage.