Martha Owns Gator Corporation Stock Having an Adjusted Basis of $21,000

question 12

Essay

Martha owns Gator Corporation stock having an adjusted basis of $21,000. As part of a tax-free reorganization involving Gator and Baker Corporations, Martha exchanges her Gator stock for $18,000 of Baker stock and $6,000 (face amount and FMV)of Baker securities. What is Martha's basis in the Baker stock?

---

Definitions:

Encroachments on Autonomy

Actions or policies that infringe upon an individual's right to make their own choices and control their own lives.

Someone Else Problem

A psychological effect where people ignore issues that are not personally affecting them, often highlighting a lack of responsibility or empathy.

Advance Directives

Legal documents that allow individuals to specify their preferences for medical treatment in case they become unable to communicate their decisions in the future.

Contagious Diseases

Illnesses that can be transmitted from person to person, animal to person, or through the environment, often requiring medical intervention to control.