Can you read the paragraphs of tax accounting and answer the questions properly? Amaranth Corporation would like to acquire the rights to a chemical process owned by Bistre Corporation. Bistre cannot sell the process because the rights are not transferrable under the terms of the controlling contract. An acquisitive Type D reorganization seems like a solution, but Amaranth does not want all of Bistres assets to be retained in the successor corporation. Amaranth suggests that Bistre spin off the unwanted assets into a new corporation and then proceed with the acquisitive Type D reorganization in which Amaranth transfers all of its assets in exchange for 75% of Bistres stock. Explain whether the transactions conducted sequentially in these steps receive a favorable income tax treatment. Amaranth and Bistre need your help in this discussion question. What do you suggest?