Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. acquiring owns all of the stock of s1 and s2. s1 a

Acquiring owns all of the stock of S1 and S2. S1 and S2 each own...

70.2K

Verified Solution

Question

Accounting

Acquiring owns all of the stock of S1 and S2. S1 and S2 each own 50% of the stock of S3. Target merges into Acquiring in an otherwise qualifying section 368(a)(1)(A) reorganization. Acquiring transfers all of the Target assets directly to S3. Choose the best answer:

A The transfer to S3 does not violate continuity of business enterprise (CoBE) because S3 is a member of Acquirings qualified group.

B The transfer directly to S3 fails continuity of business enterprise (CoBE) because the asset does not move through S1 and S2.

C The transfer to S3 does not violate continuity of business enterprise (CoBE) because there is no continuity of business enterprise (CoBE) requirement after a merger reorganization.

D The transfer to S3 does not violate continuity of business enterprise (CoBE) if S3 does not acquire substantially all of the assets of Target.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. What is one big difference between how frogs and fish gastrulate? (1-2 sentences) (Hint -explain...

Biology
Q

A) Identifying genes like HMGA2 is important, because it is evidence of natural selection. How...

Biology
Q

Purchases transactions Bowers Company purchased merchandise on account from Saunders Corp for 10 200 terms...

Basic Math
Q

Which situations most likely involve the use of decimals? Choose more than one answer.Counting the...

Basic Math
Q

USING STRUCTURE Describe the transformation of the graph of the parent quadratic function to the...

Basic Math
Q

For the accompanying data set a draw a scatter diagram of the data b by...

Statistics
Q

Find the centroid of the region in the first quadrant bounded by the x axis...

Calculus
Q

Green tea Company earned net income of 110000 during the year ended December 31 2024....

Accounting
Q

Razmons Jewelers has accumulated the following budgeted overhead information (dollar amounts may include both fixed...

Accounting
Q

Lynch Company manufactures and sells a single product. The following costs were incurred during the...

Accounting
Q

Early in 2020, Sporty corporation issued 100,000 common shares ($ 1 par value). During the...

Accounting
Q

Falcon Gas Inc. and Ike Gas Co. jointly own the Javelina Field. Falcon Gas Inc....

Accounting