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Brad Exchanges 1,000 Shares of Goodyear Corporation Stock Having a $15,000

Question 46

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Brad exchanges 1,000 shares of Goodyear Corporation stock having a $15,000 basis for Atlas Corporation stock having a $25,000 FMV as part of a Type A tax-free reorganization. Brad also receives $6,000 cash as part of the reorganization. How much gain must Brad recognize?

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Gain is recognized in a Type A...

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