Bob Exchanges 4,000 Shares of Beetle Corporation Stock That He

question 43

Multiple Choice

Bob exchanges 4,000 shares of Beetle Corporation stock that he had purchased for $800,000 for 6,000 shares of Butterfly Corporation common stock with a fair market value of $1,000,000.What is Bob's recognized gain on the exchange and his basis in the Butterfly stock?

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Definitions:

Weight Control

The practice of maintaining a healthy body weight through diet, exercise, and lifestyle management.

Proactively Manage

The approach of actively and preemptively identifying and addressing issues or opportunities within an organization before they become significant problems.

Workplace Violence

Any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior that occurs at work.

Zero-Tolerance Policy

A strict policy that enforces immediate punishment for violations of a stated rule, with no allowances for accidental or minor infractions.