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Greystoke, Inc. acquires the assets of Blackstone, Ltd. for its voting convertible preferred stock and assumes liabilities of $60,000. The assets have a basis of $250,000 and a value of $380,000. One of the shareholders in Blackstone trades her old shares with a basis of $3,000 for stock in Greystoke worth $3,200.

(a) What kind of reorganization took place?

(b) What is Greystoke's basis in the acquired assets?

(d) What would change, if, instead of assuming $60,000 of liabilities, this amount were paid in cash?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9417457

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