Identify the type of each of the following reorganizations.
a. Briggs Corporation was originally incorporated in Georgia but now conducts most of its business in Florida. The firm transfers substantially all its Georgia assets to a new Florida corporation. The Georgia entity liquidates shortly after the transfer. All “Georgia” shareholders swap their “old” Briggs stock for “new” Briggs stock, thereby acquiring an ownership interest in the Florida entity.
b. Jones Corporation exchanges all $1 million of its $1,000 face amount, 6% bonds for the same amount of new convertible bonds bearing a lower interest rate.
c. Bill Smith owns 100% of Smith Corporation and James Jones owns 100% of Jones Corporation. The two corporations are combined into a single entity called Smith & Jones Corporation. Each shareholder in the two original corporations receives stock in the new combined entity in proportion to the value of his original stock holdings.
d. Dupree Corporation is in bankruptcy. The corporation works out an arrangement whereby bondholders and other creditors receive Dupree notes and stock in exchange for discharge of their original claims.