49. Which of the following does not occur in a Type B reorganization?

a. The shareholders stock bases carry over to the acquiring corporation.

b. The acquiring corporations basis in the acquired corporations assets depends on the value of the consideration paid.

c. The acquired corporations tax attributes generally remain in the acquired corporation.

d. Neither gain nor loss is generally recognized by the corporations involved, nor is there any recapture of depreciation or investment tax credit.

50. Which of the following is not a requirement under Code Section 355 in order to qualify a transaction as a divisive Type D reorganization?

a. Shareholders must not sell their stock for at least five years after the transaction.

b. There must be a substantial business purpose for the transaction.

c. Both the transferor corporation and the controlled corporation must be engaged in an active trade or business after the distribution.

d. 80 percent control must be transferred to the transferors shareholders.