Basis to the XYZ Corporation of the A Corporation's stock acquired on June 30, 1954 | $30,000 |
Basis of the 500 shares of the A Corporation's stock acquired by the XYZ Corporation on June 30, 1955 | 30,000 |
Basis of all stock of A Corporation | 60,000 |
Basis of stock of A Corporation ($60,000)/Value of XYZ Corporation's total assets at June 30, 1955, time of the latest acquisition ($1,500,000) = 4 percent
Basis to the XYZ Corporation of the 1,000 shares of the A Corporation's stock acquired on June 30, 1954 | $30,000 |
Basis of the 1,000 shares of the A Corporation's stock acquired on June 30, 1955 | 60,000 |
Total | 90,000 |
Basis of stock of A Corporation ($90,000)/Value of XYZ Corporation's total assets at June 30, 1955, time of the latest acquisition ($1,500,000)= 6 percent
Basis to the XYZ Corporation of investments in the A Corporation's stock: | |
1,000 shares acquired June 30, 1954 | $30,000 |
1,000 shares acquired June 30, 1955 | 60,000 |
100 shares acquired June 30, 1956 | 6,000 |
Total | 96,000 |
Basis of stock of A Corporation ($96,000)/Value of XYZ Corporation's total assets at June 30, 1956, time of the latest acquisition ($2,000,000) = 4.8 percent
26 C.F.R. §1.851-6