QUESTION 33 Ursula purchased stock in Purple, Inc., 6 years ago for $150,000. Purple has assets with a value of $225,000 ($175,000 basis) and liabilities of $60,000. Purple transfers $200,000 of assets and all of its liabilities to Orange Corporation in exchange for Orange common stock. Purple distributes the Orange stock and its $25,000 remaining asset (cash) to Ursula in exchange for all of her Purple stock. Purple then liquidates. Purple recognizes a gain of QUESTION 34 The Stretchy Corporation has $500,000 of assets with a basis of $350,000 and liabilities of $125,000. TinyPC acquires Stretchy's assets and $100,000 of liabilities by exchanging $400,000 of its voting stock. Stretchy distributes the TinyPC stock and remaining liabilities to its shareholder in exchange for her Stretchy stock with a basis of $275,000 and then it liquidates. This restructuring qualifies as a reorganization with no recognized gains or losses by Stretchy Corporation. True False QUESTION 35 Titanium Corporation has a value of $800,000, basis in its assets of $670,000, and liabilities of $200,000. IronSteel Corporation acquires 90% of Titanium's assets by exchanging $550,000 of its voting stock, $20,000 cash, and assuming $150,000 of Titanium's liabilities. The remaining 10% of Titanium's assets not acquired is $80,000 cash. Titanium distributes the IronSteel stock, $100,000 in cash and associated $50,000 in liabilities to its shareholder, Manuel, irn exchange for his Titanium stock (basis $560,000). This is a "Type A" reorganization True False