Question: In a type C reorganization if as part of the exchange the transferor corporation is liquidated and distributed two retained assets, one with

In a type

"

"

reorganization if as part of the exchange the transferor corporation is liquidated and distributed two retained assets, one with a built in gain, and one wit a built in loss, to its sole shareholder, the transferor corporation will:

.

not recognize either gain or loss.

.

recognize gain only.

.

recognize loss only.

.

net the gain and loss and recognize only the net gain

/

loss of these two distributed assets.

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