Identify Which of the Following Statements Is True

question 72

Multiple Choice

Identify which of the following statements is true.

• A) The target corporation's tax attributes are lost in a Type B reorganization.
• B) A Type B reorganization can be accomplished without formal shareholder approval.
• C) Ann, Dewey Corporation's sole shareholder, exchanges her Dewey stock having a $400,000 FMV and a $175,000 adjusted basis for $350,000 of Heider Corporation stock and $50,000 cash. Ann realizes a $225,000 gain on the stock transfer, none of which is recognized.
• D) All of the above are false.