Problem 7-24 (LO. 3) Classify the fotlowing transactions as either a non-taxable reorganization (select which type) or as Taxable a. AlphaPsi Corporation owns two lines of business that it has conducted for the last eight years. For liablityType c protection, AlphaPsi's sharehoiders decide that it would be best to separate into two corporations. The assets and liabilities of the garbage collection division are transferred to Alpha Corporation in exchange for all of its stock. The manufacturing division's assets and liabilities are exchanged for all of the stock of Psi Corporation. The Alpha and Psi stocks are distributed to the AlphaPsi shareholders in return for all of their AlphaPsi stock. AlphaPsi then liquidates. b. Alpha, Inc., owns assets valued at $1,000,000 and fiabilities of $450,000. Beta Corporation transfers axable $500,000 of its voting stock and $50,000 in cash for all Alpha's assets and assumes 100% of its liabilities. Alpha distributes the Beta stock and cash to its shareholders and then liquidates. c. Alpha Corporation moves its headquarters and state of legal incorporation from Salem, Oregon, to Dover Type A Delaware. It also changes its name to Beta, Inc. Type c d. Beta Company holds assets valued at $850,000 and liablities of ss0.000. Alpha, Inc., transfers $790,000 of its voting stock and $10,000 of nonvoting common stock for all of Beta's common and preferred stock. Beta becomes a subsidiary of Alpha. e. Alpha, Inc., owns asse ts valued at $600,000 and liabilities of $150,000. Beta Corporation exchanges $270,000 Typea of its voting stock and investments worth $180,000 for all of Alpha's assets and liabilities. Alpha distributes the Beta stock to its shareholders for 60% of their stock and retains the investments. Beta Company holds assets valued at $3,000,000 and liabilities of $100,000. Nu Company transfers $2,850,000 of its voting stock for 95% of Beta's assets. Beta distributes the and the liabilities to its shareholders; it then liquidates Type C f. Nu stock, the remaining assets Problem 7-24 (LO. 3) Classify the fotlowing transactions as either a non-taxable reorganization (select which type) or as Taxable a. AlphaPsi Corporation owns two lines of business that it has conducted for the last eight years. For liablityType c protection, AlphaPsi's sharehoiders decide that it would be best to separate into two corporations. The assets and liabilities of the garbage collection division are transferred to Alpha Corporation in exchange for all of its stock. The manufacturing division's assets and liabilities are exchanged for all of the stock of Psi Corporation. The Alpha and Psi stocks are distributed to the AlphaPsi shareholders in return for all of their AlphaPsi stock. AlphaPsi then liquidates. b. Alpha, Inc., owns assets valued at $1,000,000 and fiabilities of $450,000. Beta Corporation transfers axable $500,000 of its voting stock and $50,000 in cash for all Alpha's assets and assumes 100% of its liabilities. Alpha distributes the Beta stock and cash to its shareholders and then liquidates. c. Alpha Corporation moves its headquarters and state of legal incorporation from Salem, Oregon, to Dover Type A Delaware. It also changes its name to Beta, Inc. Type c d. Beta Company holds assets valued at $850,000 and liablities of ss0.000. Alpha, Inc., transfers $790,000 of its voting stock and $10,000 of nonvoting common stock for all of Beta's common and preferred stock. Beta becomes a subsidiary of Alpha. e. Alpha, Inc., owns asse ts valued at $600,000 and liabilities of $150,000. Beta Corporation exchanges $270,000 Typea of its voting stock and investments worth $180,000 for all of Alpha's assets and liabilities. Alpha distributes the Beta stock to its shareholders for 60% of their stock and retains the investments. Beta Company holds assets valued at $3,000,000 and liabilities of $100,000. Nu Company transfers $2,850,000 of its voting stock for 95% of Beta's assets. Beta distributes the and the liabilities to its shareholders; it then liquidates Type C f. Nu stock, the remaining assets