Q10. Merck Corporation transfers 40% of its stock and $50,000 in cash to Sanofi Corporation for $500,000 of assets and all $200,000 of its liabilities. Sanofi exchanges the Merck stock, cash, and its remaining $100,000 of assets with its shareholders for all of their stock in Sanofi. After the exchange, Sanofi liquidates. The exchange qualifies as what type of transaction? Please justify your answer.

	a.	Type A reorganization.
	b.	Type B reorganization.
	c.	Type C reorganization.
	d.	Type D reorganization.
	e.	A taxable exchange.