Arnold Corporation plans to acquire all the assets of Turner Corporation in an asset-for-stock exchange. Turners assets

Question:

Arnold plans to acquire all the assets of Turner in an asset-for-stock exchange. Turner’s assets have a $600,000 adjusted basis and a $1 million FMV. Which of the following transactions qualify as a Type C reorganization (assuming Turner liquidates as part of the reorganization)?
a. The assets are exchanged for $800,000 of Arnold voting and $200,000 of cash.
b. The assets are exchanged for $800,000 of Arnold voting and $200,000 of Arnold bonds.
c. The assets are exchanged for $1 million of Arnold nonvoting preferred stock.
d. The assets are exchanged for $700,000 of Arnold voting and Arnold’s assumption of $300,000 of Turner’s liabilities.
e. The assets are exchanged for $700,000 of Arnold voting common stock, Arnold’s assumption of $200,000 of Turner’s liabilities, and $100,000 in cash.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...