1. ________ Target Corporation transfers assets with a fair market value of $300,000 (basis of $200,000) to Acquiring Corporation for voting stock in Acquiring worth $220,000, cash of $60,000, and the assumption by Acquiring of liabilities of Target in the amount of $20,000. Target then distributes the Acquiring stock and the cash to its shareholders in exchange for all their stock in Target Corporation and liquidates. This transaction qualifies as a Type C reorganization.

1. True.
2. False.