In a "C" Reorganization, Target Corporation Transferred All of Its

question 54

Multiple Choice

In a "C" reorganization, Target Corporation transferred all of its assets except land to Acquiring Corporation.The land was worth $600,000 (basis $520,000) .The transferred assets were worth $20 million and had a basis of $16 million in the hands of Target.In exchange, Target received stock of Acquiring worth $19.4 million, cash of $200,000, and an office building worth $400,000 (basis to Acquiring was $260,000) .Target liquidates, subject to the rules of § 361.How much gain must Target recognize?

• A)None
• B)$80,000 on land
• C)$140,000 on office building
• D)$600,000 on the assets received
• E)$600,000 on the assets received and $80,000 on the land distributed

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Definitions:

Male Managers

Men who hold positions of authority and responsibility for planning, directing, and overseeing the work and activities of others within an organization.

Female Employees

Women who are employed by organizations, contributing to various sectors and industries in the workforce.

Feminist Organization

An organization that promotes gender equality and addresses issues related to women's rights and interests.

Environment

The surrounding conditions, influences, or forces that affect the growth, development, or existence of organisms or entities.