Which of the Following Statements Regarding Spin-Offs and Carve-Outs Is

question 20

Multiple Choice

Which of the following statements regarding spin-offs and carve-outs is not true?

• A)Spin-offs are not taxed if the shareholders of the parent company are given a majority of shares in the new company.
• B)Spin-offs are not taxed if the shareholders of the parent company are given at least 80 percent of the shares in the new company.
• C)Gains or losses from carve-outs are taxed at the corporate tax rate.
• D)In carve-outs, the parent company retains majority control.

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