Manx Corporation Transfers 40% of Its Stock and $50,000 in Cash

question 53

Multiple Choice

Manx Corporation transfers 40% of its stock and $50,000 in cash to Somali Corporation for $500,000 of assets and all $200,000 of its liabilities. Somali exchanges the Manx stock, cash, and its remaining $100,000 of assets with its shareholders for all their Somali stock. After the exchange, Somali liquidates. The exchange qualifies as what type of transaction?

• A) "Type A" reorganization.
• B) "Type B" reorganization.
• C) "Type C" reorganization.
• D) "Type D" reorganization.
• E) A taxable exchange.

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Definitions:

Human Resource Planning

The process of ensuring that an organization has the right number and types of employees, at the right time and place, who are capable of effectively and efficiently completing tasks that will help the organization achieve its overall strategic objectives.

Strategic Planning

Procedures for making decisions about the organization’s long-term goals and strategies.

Balanced Scorecard

A management and planning methodology aimed at aligning organizational activities with its vision and strategy, enhancing communication both internally and externally, while tracking the organization's performance in relation to its strategic objectives.