Target Corporation transfers assets with a fair market value of $300,000 (basis of $200,000) to Acquiring Corporation
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Target Corporation transfers assets with a fair market value of $300,000 (basis of $200,000) to Acquiring Corporation for voting stock in Acquiring worth $220,000, cash of $60,000, and the assumption by Acquiring of liabilities of Target in the amount of $20,000. Target then distributes the Acquiring stock and the cash to its shareholders in exchange for all their stock in Target Corporation and liquidates. This transaction qualifies as a Type C reorganization.
True.
False.
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date: