1. True or False

The sale of 306 stock generally results in dividend income to the shareholder and a reduction in the corporations E & P.

2. Target sells assets not desired by Acquirer before entering into a reorganization transaction with Acquirer. In which reorganization will the step transaction doctrine not apply to the sale by Target?

a. Type A reorganization.

b. Type B reorganization.

c. Type C reorganization.

d. Only Type A and Type C.