In a statutory merger, P Corporation transfers assets worth $250,000 (basis $200,000) in exchange for M Corporation's stock worth $250,000.What is M Corporation's basis in the assets?

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In a statutory merger, the surviving corporation (M Corporation in this case) takes over the assets and liabilities of the merged corporation (P Corporation in this case) at their adjusted basis. Therefore, M Corporation's basis in the assets will be the same as P Corporation's basis, which is $200,000.

In a Statutory Merger, P Corporation Transfers Assets Worth $250,000