Paper corporation adopts a plan of reorganization and exchanges 1,000 shares of its voting stock and $50,000 in cash for chase corporation's assets having a $200,000 adjusted basis and a $275,000 fmv. chase corporation is subsequently liquidated. what is paper corporation's basis in the assets acquired in the exchange?

$200,000

Explanation:

According to the historical cost principle, the fixed assets should be recorded at the purchase cost or book value in the books of accounts, not the fair market value.

According to the given scenario, the Asset value should be recorded at the adjusted basis i.e $200,000 not the $275,000 i.e fair market value

The number of shares and the cash balance should be ignored.

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )

answersecondary succession;