1. Which of the following is not considered a permanent difference:

A. Penalty expense

B. Bad debt expense

C. Officer life insurance expense

D. Municipal interest income

2.

With regard to a Type C reorganization, which of the following is not true:

A. The acquired corporation must distribute the property it receives from the acquiror to its shareholders

B. It is less flexible than a Type A reorganization

C. The target must be dissolved

D. The shareholders of the acquiror do not have to approve the acquisition.