undefined Question 20 Not yet answered Prior to being acquired, a transferor corporation spins...
90.2K
Verified Solution
Link Copied!
Question
Accounting
undefined
Question 20 Not yet answered Prior to being acquired, a transferor corporation spins off its unwanted assets to shareholders. It subsequently transfers its remaining assets to the acquiring corporation solely for voting stock of the acquiring corporation. Could the acquisition qualify as a Type C reorganization? Could the acquisition qualify as a Type A reorganization? Points out of 1.00 Select one or more: Flag question a. No, this transfer does not qualify as a Type A or a Type C reorganization b. The transfer qualifies as a type C reorganization if the transfer to the acquirer company constitutes substantially all of the asset of the transferor (i.e., the transfer is at least 70% gross assets and 90% net assets prior to the spin-off). c. This transfer may qualify as a Type C reorganization but cannot qualify as a Type A reorganization d. The transfer may qualify as a Type A reorganization if other conditions of the Type A reorganization (such as shareholder approval, liability assumption, etc.) are met. e. This transfer may qualify as a Type A reorganization but cannot qualify as a Type C reorganization
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: Flex AI - Your personal assistant for all your inquiries!
undefined