Simone transferred 100 percent of her stock in purple company to plum corporation in a type a merger. in exchange, she received stock in plum with a fair market value of $577,500 plus $577,500 in cash. simone's tax basis in the purple stock was $200,000. what amount of gain does simone recognize in the exchange and what is her basis in the plum stock she receives?

Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct.d.