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Business, 31.10.2019 06:31 hannahponder

Mdc corporation is acquiring aim corporation in a "type a" reorganization by exchanging 49% of its voting stock and $200,000 for all of aim’s assets (value of $1,000,000 and basis of $200,000) and liabilities ($300,000). the shareholders of aim are andy (500 shares) and tom (500 shares). they bought their stock for $100 per share ten years ago. what is the amount of gains or losses that andy will realize and recognize due to the reorganization? what is the amount of the gain/ loss that aim will realize and recognize from the transaction? what is the value of the stock they received from mdc and what is andy’s basis in the mdc stock? what is mdc’s basis in aim’s old assets?

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