Zepher owns 80 shares of Wagon Corporation common stock for which he paid $80,000.The other 20 shares belong to Zepher's sister,Xila,which she purchased for $20,000.Wagon has been very profitable (fair market value of $500,000)due in large part to the efforts of Xila.Consequently,Zepher and Xila have agreed that she should have a larger percentage of ownership in Wagon.Zepher will receive a $100,000 bond for 20 common shares and 10 shares of preferred stock for 30 shares of common stock.What is the amount of gain or loss that Zepher and Wagon Corporation will recognize on this transaction?

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The Answer of Zepher owns 80 shares of Wagon Corporation common stock for which he paid $80,000.The other 20 shares belong to Zepher's sister,Xila,which she purchased for $20,000.Wagon has been very profitable (fair market value of $500,000)due in large part to the efforts of Xila.Consequently,Zepher and Xila have agreed that she should have a larger percentage of ownership in Wagon.Zepher will receive a $100,000 bond for 20 common shares and 10 shares of preferred stock for 30 shares of common stock.What is the amount of gain or loss that Zepher and Wagon Corporation will recognize on this transaction?

Zepher Owns 80 Shares of Wagon Corporation Common Stock for Which