Against the will of Rally Corporation’s management, Buoy Corporation offers Rally’s shareholders 2 shares of Buoy common stock for each share of Rally common and 50 shares of Buoy common for each share of Rally preferred. The results of a hostile takeover yield Buoy 85% of Rally common stock and 100% of the preferred. The only stock it did not obtain was that owned by management. This transaction qualifies as a(n):

a. “Type A” consolidation.

b. “Type B” reorganization.

c. “Type C” reorganization.

d. “Type D” split-up reorganization.

e. Taxable event

Answer rating: 100% (QA)

ANSWER e Taxable event A taxable event is any action or transaction that may result in taxes ow... View the full answer