37 . The acquiring corporation does not obtain the target corporation?s tax attributes in a

a. Type A reorganization.

b. Type B reorganization.

c. Code Section 332 liquidation.

d. The acquiring corporation obtains the target's tax attributes in all of the above.

38. Conway Corporation sells its entire business to Acquirer for total proceeds of $10,000. Conway Corporation's basis in its business assets is $2,000. The determination of whether the gain is taxable as ordinary income or capital gain depends on:

a. the type of assets sold.

b. the nature of Conway Corporation's business operations, that is, how it has used those assets.

c. the holding period for the assets.

d. all of the above.

39. Kim exchanges stock he owns in Cardinal Corporation for stock in Robin Corporation plus a bond worth $3,600 (principal amount of $3,000). The exchange is pursuant to a corporate reorganization of both corporations that meets all of the requirements to qualify as a reorganization under Code Section 368(a)(1). Kim paid $61,600 for the stock in Cardinal Corporation four years ago. The Robin Corporation stock is worth $60,000. Kim recognizes gain on the transaction of

a. $0.

b. $2,000.

c. $3,000.

d. $3,600.

Answer rating: 100% (QA)

37 Correct answer A Explanation the correct answer for this is A As in type A ... View the full answer