In a valid type b reorganization thomasina exchanged 500, Ask an Expert

Accounting

In a valid Type B reorganization, Thomasina exchanged 500 shares of her Theta Corporation stock for 500 voting shares of Alpha Corporation and received $2,000 cash. Thomasina had purchased her Theta stock four years ago for $30,000. The Alpha stock has a fair market value (FMV) of $35,000 at the exchange date. What gain and/or loss should Thomasina report?

a. $0

b. $2,000

c. $3,000

d. $5,000

e. None of the above

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M946029

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Questions 1did the employees know of the lost inventory2why

Questions: 1 Did the employees know of the lost inventory? 2 Why the auditor did not take any action against the insurance company? 3 Was there any conspiracy involved in between the insurance company and the auditor? 4 ...

Question - the standards for one case of springfever tonic

Question - The standards for one case of Springfever Tonic are as follows: Direct materials 5.40 lb @ $ 4.40 /lb = $ 23.76 Direct labor 4.40 hr @ $ 12.30 /hr = $ 54.12 Variable overhead (based on direct labor hours) 4.40 ...

Question - melton corporation is preparing the comparative

Question - Melton Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2017, and May 31, 2018. The income from operations for the fiscal y ...

Question - clean sweep inc started the month of june with

Question - Clean Sweep, Inc. started the month of June with $800 worth of cleaning supplies. During the month, Clean Sweep purchased $300 of supplies for cash. At June 30, $200 worth of supplies was unused. How much clea ...

Question - for sunland co beginning capital balances on

Question - For Sunland Co., beginning capital balances on January 1, 2020, are Nancy Payne $18,900 and Ann Dody $24,000. During the year, drawings were Payne $8,700 and Dody $5,200. Net income was $28,700, and the partne ...

Question - alpha corp had 15000 of dividends in arrears for

Question - Alpha Corp. had $15,000 of dividends in arrears, for cumulative, non-participating preferred stock as of January 1, 2018.This value of dividends in arrears was for the fiscal years of 2016 & 2017. During the f ...

Question - june 30 you record the adjusting entry for the

Question - June 30 You record the adjusting entry for the depreciation on equipment for the month, which is estimated to be $5,640 per year. What is the book value of the equipment after the adjusting entry in the proble ...

Question - an employee of a board of education is paid an

Question - An employee of a Board of Education is paid an annual salary in 22 bi-weekly payments of $1237.96 each. The employee is under contract for 200 workdays of 8 hours each. (a) What is the hourly rate of pay? (b) ...

Question - lana operates a real estate appraisal service

Question - Lana operates a real estate appraisal service business in a small town serving local lenders. After noting that lenders must pay to bring in a surveyor from out of town, she completes a course and obtains a su ...

Question reflect back on what you have learned in this

Question: Reflect back on what you have learned in this course about how to construct high-quality arguments for positions. Give an example of how the ability to think logically and to construct good arguments could help ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert