[Th3xf4ctor]

I need some help from someone in the finance or tax related fields.

My question is in regards to this: I am to be given preferred stock. Around 800 preferred shares valued at a price of $2.50/per share. The conversion factor to common stock is 100,000:1. If I am to convert 1 preferred share, that would give me 100,000 common stock. If the price of the common shares is $2.50 that would equal a sum of $250,000. What are my tax burdens. Would I end up paying tax on the 800 preferred at there price plus the 100,000 shares of common stock at the selling price? This is where I need help. If someone could help me I would greatly appreciate it.