Jasmine transferred 100 percent of her stock in Emerald Company to Jade Corporation in a Type A merger. In exchange she received stock in Jade with a fair market value of $957,500 plus $1,262,500 in cash. Jasmine's tax basis in the Emerald stock was $1,113,500. What amount of gain does Jasmine recognize in the exchange and what is her basis in the Jade stock she receives?

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The Answer of Jasmine transferred 100 percent of her stock in Emerald Company to Jade Corporation in a Type A merger. In exchange she received stock in Jade with a fair market value of $957,500 plus $1,262,500 in cash. Jasmine's tax basis in the Emerald stock was $1,113,500. What amount of gain does Jasmine recognize in the exchange and what is her basis in the Jade stock she receives?

Jasmine Transferred 100 Percent of Her Stock in Emerald Company