2. In a business combination that is a tax-free corporate reorganization for income tax purpose, may the

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2. In a business combination that is a “tax-free corporate reorganization” for income tax purpose, may the temporary differences between current fair values and tax bases of the combinee’s inventories and plant assets be realized through the assets’:

Sale? Depreciation?

a. Yes Yes

b. Yes No

c. No Yes

d. No No

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