Corporation P acquires 95 percent of Corporation T's assets for $19.5 million of P's stock in a qualifying reorganization.The assets transferred have a basis of $14 million.T retained $500,000 of cash to pay its remaining liabilities.It only used $200,000 of the cash and the remaining cash and P stock are distributed to T's shareholder, who has a basis of $14 million in her stock.What is the gain recognized on this reorganization?

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The Answer of Corporation P acquires 95 percent of Corporation T's assets for $19.5 million of P's stock in a qualifying reorganization.The assets transferred have a basis of $14 million.T retained $500,000 of cash to pay its remaining liabilities.It only used $200,000 of the cash and the remaining cash and P stock are distributed to T's shareholder, who has a basis of $14 million in her stock.What is the gain recognized on this reorganization?

Corporation P Acquires 95 Percent of Corporation T's Assets for $19.5