What is a recapitalization?

A. A nontaxable reorganization that results in a change to a single corporation's equity or debt structure. Recapitalizations include the exchange of one class of common stock for a second class of common stock.

B. A nontaxable Type A and C reorganizations that require all of the target corporation's assets to be sold or disposed of and the gain realized is recapitalized into one class of common stock for the shareholders.

C. A nontaxable Type A reorganization that allows for the assets of the target corporation that is acquired will be capitalized up to their FMV on the financial statements as of the date of reorganization.

D. None of the above.

What types of recapitalizations are nontaxable?

A. The exchange of preferred stock for common stock, and (2) the exchange of debt for preferred or common stock.

B. The exchange of preferred stock for common stock, and (2) the exchange of common stock or preferred stock for corporate debt.

C. The exchange of common stock for corporate debt, and (2) the exchange of debt for preferred or common stock.

D. The exchange of preferred stock for common stock, and (2) the exchange of common stock for corporate debt.