Is shark taxed on the transfer of its stock to guppies

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Reference no: EM131997805

Shark Corp acquires the Assets of Guppies Corp for $100,000(FMV) of Shark Corp voting stock. Guppies asstes have a FMV of $100,000 (adjusted basis of $20,000) and Guppies has no liabilties. IMmediately after the transactio Guppie liquidates giving its shareholder Gilligan the Shark stock. Gilligans basis in Guppie was $15,000.

a) Is Shark taxed on the transfer of its stock to Guppies? why?

b) Is Guppie taxed on the receipt of the Shark stock? why?

c) Is Gilligan taxed on the receipt of the Shark stock? why?

Reference no: EM131997805

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