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:

Antiparallel

Said of a double-stranded nucleic acid in which the 5' to 3' direction of the sugar-phosphate backbone of one strand is reversed in the other strand.

Crystallographic Data

Information obtained from crystallography, a method used to determine the atomic and molecular structure of crystals, revealing the arrangement of atoms in the crystalline solid.

Watson

James Watson, an American molecular biologist, geneticist, and zoologist, best known as one of the co-discoverers of the structure of DNA in 1953.

Crick

Best known as Francis Crick, he was a British scientist who co-discovered the structure of the DNA molecule alongside James Watson.