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What is the taxable gain that shareholders must recognize

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Question - In a non-liquidating reorganization, Company A transfers assets with a $200,000 adjusted basis to Company X in exchange for $400,000 of Company X stock and $100,000 of boot property. Company A has five shareholders, each of whom owns a 20% share in the company. During the reorganization, none of the boot property is distributed to shareholders. What is the taxable gain that shareholders must recognize in this situation?

Reference no: EM133044261

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