Roberto acquired 80% of Tico's stock four years ago for $475,000.Bonita,who purchased her shares eight years ago for $80,000,owns the other 20%.In the current year,Atco Corporation (fair market value of $4.5 million)wants to acquire all of Tico,because Tico has a profitable new product line and Atco has NOLs it needs to use before they expire.Tico has assets with a fair market value of $800,000,adjusted basis of $400,000,and liabilities of $175,000.Since consumers associate the Tico name with value and quality,Atco does not want to lose the Tico name in the acquisition.Bonita does not want to participate in the reorganization and requests that she receive cash instead of stock.Determine the type of reorganization Atco and Tico should use for the restructuring.What is the gain or loss recognized by Tico,Roberto,and Bonita on the transaction?

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The Answer of Roberto acquired 80% of Tico's stock four years ago for $475,000.Bonita,who purchased her shares eight years ago for $80,000,owns the other 20%.In the current year,Atco Corporation (fair market value of $4.5 million)wants to acquire all of Tico,because Tico has a profitable new product line and Atco has NOLs it needs to use before they expire.Tico has assets with a fair market value of $800,000,adjusted basis of $400,000,and liabilities of $175,000.Since consumers associate the Tico name with value and quality,Atco does not want to lose the Tico name in the acquisition.Bonita does not want to participate in the reorganization and requests that she receive cash instead of stock.Determine the type of reorganization Atco and Tico should use for the restructuring.What is the gain or loss recognized by Tico,Roberto,and Bonita on the transaction?

Roberto Acquired 80% of Tico's Stock Four Years Ago for $475,000.Bonita,who