60.1K

Verified Solution

Link Copied!

1. Determine whether taxable and if not taxable, what type of reorg applies: a. A Corp owns assets valued at $400,000 and liabilities of $100,000. B Corp transfers $160,000 of its voting stock and $40,000 in cash for 75% of As assets and all of its liabilities. A distributes the remaining assets and the B stock to its shareholders and then liquidates. b. A Corp acquires 200,000 shares of B Corp 10 years ago. In the current year, A exchanges 40% of its stock for 500,000 of the remaining 600,000 shares of B stock. After the transaction, A owns 700,000 of Bs 800,000 outstanding shares. c. A Corp owns assets valued at $1 million and liabilities of $450,000. B transfers $500,000 of its voting stock and $50,000 cash for all of As assets. B assumes As liabilities. A distributes the B stock and cash to its shareholders and liquidates. d. B Corp holds assets valued at $850,000 and liabilities of $50,000. A Corp transfers $790,000 of voting stock and $10,000 non-voting for all of Bs common and preferred. B becomes a subsidiary of A. e. A owns assets valued at $600,000 and liabilities of $150,000. B exchanges $270,000 of its voting stock and investment worth $180,000 for all of As assets and liabilities. A distributes the B stock to its shareholders for 60% of their stock and retains the investments.

Answer & Explanation Solved by verified expert

See Answer