Crested Serpent Eagle CSE) Corporation Is Owned by Lin Yuan

question 23

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 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:

René Descartes

A 17th-century French philosopher, mathematician, and scientist who is often considered the father of modern philosophy. He is best known for his statement, "I think, therefore I am."

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for his concepts of the collective unconscious and archetypes.

J.Allan Hobson

J.Allan Hobson was a prominent neuroscientist and psychiatrist known for his research on the brain mechanisms of dreaming and consciousness.