Exercise 20-25 (Algorithmic) (LO. 3) Townsend, the sole shareholder of Pruett Corporation, has a $477,200 basis in his stock. He exchanges all of his Pruett stock for $596,500 of Rogers Corporation voting common stock plus land with a fair market value of $119,300 and basis of $29,825. Pruett distributed the land to Townsend. This exchange meets all Code requirements. If an amount is zero or there is no gain or loss, enter "0". a. What is Townsend's recognized gain/loss from the reorganization? Townsend recognizes a gain of 251,444 X. b. What is the gain/loss recognized by Pruett Corporation and Rogers Corporation on the reorganization? Rogers Corporation recognizes a gain ✓of $ of $ 0 ✓. 0 X and Pruett Corporation recognizes no gain or loss c. What is Townsend's basis in the Rogers stock and the land received? The basis in the Rogers stock is $ 0 X and the basis in the land is $ 0 X.

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