Question
Determine the type of reorganization for each of the following transactions: a. A, B and C corporations exchanged their assets in their respective corporations for
Determine the type of reorganization for each of the following transactions:
a. A, B and C corporations exchanged their assets in their respective
corporations for voting stock of newly created C corporation. None of the
corporations were liquidated immediately, but A, B and C corporations distributed
the voting stock to their shareholders along with the assets not transferred to C
corporation 18 months after the stock transfers (5).
b. S Corporation transfers its assets of its two operating divisions to X and Y
Corporations in exchange for all of the outstanding stock and $300,000 in cash. S
distributed 95 percent of the shares received and $5,000 of the cash to the
shareholders (5).
c. The shareholders of P, a Delaware Corporation, exchanged all of their stock holdings
for stock in P, a newly registered Michigan Corporation. The new P Corporation
holds all the assets of the old P and continues the line of business conducted by the old P (5).
d. M Corporation transferred voting stock to N Corporation in exchange for all of N's
voting stock. N transferred the voting stock it received from M along with some cash
to the shareholders of V for their voting stock in V Corporation. N Corporation is then
liquidated into V Corporation (5).
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