Determine whether the following transactions qualify as Type (mathrm{C}) reorganizations: a. The acquisition of all assets and
Question:
Determine whether the following transactions qualify as Type \(\mathrm{C}\) reorganizations:
a. The acquisition of all assets and liabilities of Bark Inc. by Ark Inc. for 20 percent of Ark's voting preferred stock.
b. Same as (a), but Ark sells 30 percent of Bark's assets within a week because they are not needed.
c. The acquisition of all assets of Bark Inc. for \(\$ 10\) million of voting common stock, plus the assumption by Ark Inc. of \(\$ 15\) million of Bark's liabilities.
d. The acquisition of Bark's assets for \(\$ 8\) million of Ark's voting common, the assumption of \$2 million of liabilities, and the payment by Ark of \(\$ 100,000\) cash.
e. The acquisition of Bark's assets for \(\$ 50\) million of voting, cumulative convertible preferred stock.
f. Same as (e), except that the consideration consists of bonds convertible at any time into voting common stock.
Step by Step Answer:
CCH Federal Taxation 2019 Comprehensive Topics
ISBN: 9780808049081
2019 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback