When bonds are converted to stock,no gain or loss is recognized.

Name: When bonds are converted to stock,no gain or loss is recognized.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

According to the IRS, when bonds are converted to stock, no gain or loss is recognized. This is because the value of the bonds is essentially being exchanged for the value of the stock, without any cash changing hands. Therefore, there is no taxable gain or loss from the transaction.

When Bonds Are Converted to Stock,no Gain or Loss Is