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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