13. Hartley Corporation transfers $1.2 million of its voting commoits The assets retained cash to Vector Corporation in exchange for 90% of Vector's assets. The assets retained by Vector are used to pay down the remaining liabilities owed. Vector then distributes the Hartley stock and cash to its existing shareholders in exchange for th shares. Vector then liquidates and ceases to exist. This transaction qualifies as eir Vector a: a. Type A reorganization b. Type B reorganization C. Type C reorganization d. Not a tax-free reorganization and is a taxable transaction. 14. Crosby Corporation merges into Nash Corporation by exchanging all its assets and liabilities for 300,000 shares of voting stock of Nash valued at $2 per share. David, the sole shareholder of Crosby, surrenders his Crosby stock (basis of $500,000) and receives the shares of Nash stock transferred to Crosby. How does David treat this transaction on his tax return? a. b. c. d. David recognizes a capital gain of $100,000, his Nash stock basis is $600,000. David recognizes no gain or loss; his Nash stock basis is $500,000. David recognizes a capital gain of $100,000, his Nash stock basis is $500,000. None of the above. 15. In a corporate reorganization under IRC Sec. 368, if an acquiring corporation is using property other than stock as consideration, it may recognize gains but not losses on the transaction. a True b. False 16. In a type B reorganization, the acquiring corporation can obtain control by exchanging voting common and non-voting preferred for the target corporation's outstanding stock. a. True b. False 17. In a type B reorganization, the target corporation must liquidate and cease to exist. a. True b. False