Crested Serpent Eagle (CSE) Corporation Is Owned by Lin Yuan

question 78

Multiple Choice

Crested Serpent Eagle (CSE) Corporation is owned by Lin Yuan and Yu Chi. It has been in the manufacturing and lumber businesses for 20 years. For liability protection, the manufacturing assets of CSE are transferred to Serpent Corporation for all of its stock. This stock is distributed to Lin Yuan in exchange for her CSE stock. The lumber assets are transferred to Eagle Corporation for all of its stock. Yu Chi receives the Eagle stock in exchange for his CSE shares. CSE then terminates.

• A)The transaction qualifies as a spin-off "Type D" reorganization.
• B)The transaction qualifies as a split-off "Type D" reorganization.
• C)The transaction qualifies as a split-up "Type D" reorganization.
• D)The transaction is taxable.

---

Definitions:

Court System

The organizational structure of courts within a jurisdiction, responsible for administering justice, including interpreting and applying the law.

Specific Action

An explicit, defined activity or measure taken to achieve a particular goal or outcome.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Standing to Sue

The legal right to initiate a lawsuit, based on having a sufficient connection to and harm from the law or action challenged to support that party's participation in the case.