Park Corporation distributes its shoe manufacturing line of business to the newly created ShoeBiz Corporation in a

Question:

Park distributes its shoe manufacturing line of business to the newly created ShoeBiz in a transaction qualifying as a "Type D" spin-off reorganization. Before the distribution, Park is worth $4,000,000 and its E & P balance is $630,000. After the spin-off, Park's value is $3,000,000 and ShoeBiz's value is $1,000,000.
After the "Type D" reorganization, what is the E & P balance for ShoeBiz and for Park?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...