Pursuant to a type a corporate reorganization what amount


Question - Pursuant to a Type A corporate reorganization, a bondholder exchanged an old $25,000 face value bond with a basis of $25,000, for a new bond with a face value of $30,000 and a fair market value of $35,000. What amount of gain would be recognized by the bondholder as a result of the exchange?

a. $0

b. $5,000

c. $5,833

d. $10,000

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Accounting Basics: Pursuant to a type a corporate reorganization what amount
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