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Pursuant to a Corporate reorganization, Marcia exchanged stock she owned in Cott Corp. for stock in Mills Corp . valaued at $70,000, plus a Mills Corp bond worth $9,000 (face amount of $10,000). Marcia paid $65,000 for her stock in Cott 18 months ago.

a) What is the amount and character of Marcia's recognized gain?

b) What is Marcia's basis for her Mill's Corp. bond?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91879661

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