Label the following transactions: a. A Nevada corporation formed a corporation in Florida and transferred all assets
Question:
Label the following transactions:
a. A Nevada corporation formed a corporation in Florida and transferred all assets to it for 100 percent ofi ts stock. It then distributed the stock to its shareholders in cancellation of their Nevada corporation stock and was dissolved.
b. ABC Corp. acquired all the stock of MNO Corp. for its convertible bonds.
All MNO assets were transferred to ABC, whereupon MNO was dissolved.
c. Acorporation issues $30,000 worth of its own voting stock to retire some of its outstanding bonds with a principal amount of $40,000.
d. Convertible preferred stock is converted into common stock of the issuing corporation.
e. Acorporation incorporates a division and distributes the shares received pro rata to its shareholders.
f. Acorporation distributes preferred stock to common shareholders for each 10 shares of common stock outstanding.
Step by Step Answer:
CCH Federal Taxation Basic Principles 2020
ISBN: 9780808051787
2020 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback