Pallid Swift, Inc

question 87

Multiple Choice

Pallid Swift, Inc., is an S corporation located in Colorado. In the past year, PallidSwift has become profitable; but due to its rapid growth, Pallid Swift has no excess cash for distributions. Therefore, Pallid Swift decides that it should become a C corporation.

• A)This transaction qualifies as a "Type F" reorganization.
• B)This transaction qualifies as a "Type E" reorganization.
• C)This change has no tax significance for Federal purposes.
• D)This change is a taxable event.
• E)None of the above.

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Definitions:

Superego

A component of Sigmund Freud's psychoanalytic theory, representing the moral conscience and ideals acquired from parents and society.

Ego

The part of the mind that mediates between conscious and unconscious thoughts, balancing desires based on reality.

Id

In psychoanalytic theory, the part of the personality that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Superego

A component of Sigmund Freud's psychoanalytic theory, representing the ethical component of the personality and provides the moral standards by which the ego operates.