Green Corporation purchased 100 percent of the outstanding stock of White Corporation durring 2014. Durring 2016, Green Corporation distributes all of its White Corporation stock to Green shareholders. Both Green and White corporations have been in business for more than 10 years.

a) Descibe the tax consequences to Green Corporation and its shareholders.

b) How would your answer change if Green Corporation had aquired the White Corporation stock in 2014 in Type B reorganization?