Jupiter Corporation acquires all of Titian Corporation's stock in exchange for its voting stock.Iris received 1,000 shares of Jupiter valued at $50,000 for her 8,000 shares of Titian that cost Iris $100,000 five years ago.In addition to the Jupiter stock,she receives a $30,000 bond.How does Iris treat this transaction for tax purposes?
A)Iris recognizes a loss of $50,000.Her Jupiter stock basis is $50,000.
B)Iris recognizes a loss of $20,000.Her Jupiter stock basis is $80,000.
C)Iris recognizes a $20,000 loss and a $25,000 gain.Her Jupiter stock basis is $105,000.
D)Iris realizes a $20,000 loss that is not recognized.Her Jupiter stock basis is $120,000.
E)None of the above.

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The Answer of Jupiter Corporation acquires all of Titian Corporation's stock in exchange for its voting stock.Iris received 1,000 shares of Jupiter valued at $50,000 for her 8,000 shares of Titian that cost Iris $100,000 five years ago.In addition to the Jupiter stock,she receives a $30,000 bond.How does Iris treat this transaction for tax purposes?
A)Iris recognizes a loss of $50,000.Her Jupiter stock basis is $50,000.
B)Iris recognizes a loss of $20,000.Her Jupiter stock basis is $80,000.
C)Iris recognizes a $20,000 loss and a $25,000 gain.Her Jupiter stock basis is $105,000.
D)Iris realizes a $20,000 loss that is not recognized.Her Jupiter stock basis is $120,000.
E)None of the above.

Jupiter Corporation Acquires All of Titian Corporation's Stock in Exchange