Control of the Target Corporation Must Be Obtained in All

question 47

Multiple Choice

Control of the target corporation must be obtained in all reorganizations in order to avoid recognizing income.In reorganizations other than a type "D," what constitutes "control" following a reorganization?

• A)Owning 80 percent or more of voting stock and 80 percent or more of nonvoting stock
• B)Owning 50 percent of all assets
• C)Owning 80 percent of total stock
• D)All of the above answers are false.

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Definitions:

Standard Form

A recognized format for presenting information or arguments in a structured and consistent manner.

Pure Hypothetical

A scenario or statement based solely on conjecture without any factual basis or actual case reference.

Disjunctive

Pertaining to a logical relation involving a choice between two or more alternatives, often expressed as an "or" statement in logic.

Ingredient

A component or element that is part of a larger mixture, recipe, or formula.