Theta corporation purchased all the assets of alpha


Question: Theta Corporation purchased all the assets of Alpha Corporation for $2,100,000. Alpha Corporation then liquidated. The basis of the assets sold was $1,465,000 and the FMV $2,000,000. Which of the following is true? Alpha recognizes $535,000 gain. Alpha recognizes $635,000 gain. Alpha recognizes $0 gain. Theta has $2,000,000 basis in the assets it purchased.

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Finance Basics: Theta corporation purchased all the assets of alpha
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