TriStateCo, an Idaho corporation, has operated landfills in Washington (WA), Idaho (ID), and Oregon (OR) for the past 20 years. The states are changing their environmental laws governing landfills, and it is cumbersome for each landfill to meet the requirements of all three states. TriStateCo thinks it would be more efficient to have the landfills incorporated in the states in which they are located. The net asset values of the landfills by state are as follows: ID, $600,000; OR, $800,000; and WA, $700,000.
a. Suggest how TriStateCo can divide itself into three companies, named by their state location.
b. Draw a diagram of your proposed reorganization and its results.