(Answered) Question - corporation p acquires 95 of corporation ts

Accounting

Question - Corporation P acquires 95% of Corporation T's assets for $19.5 million worth of P's stock in a qualifying reorganization. The assets transferred have a basis of $14 million. T retained $500,000 of cash to pay its remaining liabilities. It only used $200,000 of the cash and the remaining cash and P stock are distributed to T's shareholder, who has a basis of $15 million in her stock. What is the gain recognized on this reorganization?

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