Question
Target merges into Parent under state law.The FMV of the Target's stock is $1,000. Target's shareholders receive pro rata $1,000 FMV of Parent's nonvoting, nonparticipating,
Target merges into Parent under state law.The FMV of the Target's stock is $1,000. Target's shareholders receive pro rata $1,000 FMV of Parent's nonvoting, nonparticipating, nonconvertible 8% cumulative preferred stock.Does this qualify as a type A reorganization?
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Accounting
Authors: Charles T Horngren, Walter T Harrison
9th Edition
132959674, 978-0132569057
