For any answer requiring a number please use whole numbers only, a dollar sign, and commas for any number of $1,000 or more. So, for example if the correct answer is $1,227 that's how the answer should appear. Any other form will result in an incorrect answer. 2. If the answer is yes or no write it exactly that way, yes no. 3. Do not capitalize letters. 4. If the answer with respect to a holding period is it begins the day after the transaction write begins the day after. 5. If the question is how much gain or loss is recognized and the answer is none, write $0

11. Using the facts where stock worth $35 and cash of $65 was transferred by Acq, what is Shr's basis in the Acq stock?

12. What is Shr's holding period in the Acq stock that was worth $35 that it received in the transaction?

13. When Tar merges into Acq is that a forward or a reverse merger?

14. Briefly explain the reason why an acquisition would be structured as a reverse merger?

15. What is the major tax disadvantage of structuring an acquisition as a reverse triangular merger?