Nancy recognizes gain on the transaction


Nancy exchanges stocks she owns in Aquamarine Corporation for stock in Spinel Corporation plus a bond worth $64,000 (principal amount of $60,000). The exchange is pursuant to a tax-free reorganization of both corporations. Nancy paid $150,000 for the stock in Aquamarine four years ago. The Spinel stock is worth $250,000. Nancy recognizes gain on the transaction of:

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Accounting Basics: Nancy recognizes gain on the transaction
Reference No:- TGS053004

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