Ocelot Corporation Is Merging into Tiger Corporation Under State Law

question 12

Multiple Choice

Ocelot Corporation is merging into Tiger Corporation under state law requirements. Ocelot transfers assets worth $300,000 to Tiger. Ocelot receives 30,000 shares of Tiger stock and $200,000 cash. Ocelot transfers the Tiger stock,
$200,000 cash, and all of its liabilities $50,000) to its shareholder, Van, in exchange for all his Ocelot stock basis
$100,000) . Ocelot then liquidates. How is this transaction treated for tax purposes?

• A) Since this qualifies as a "Type A" reorganization, Van recognizes no gain.
• B) Since this qualifies as a "Type C" reorganization, Van recognizes a $200,000 gain.
• C) Since this qualifies as a "Type A" reorganization, Van recognizes a $150,000 gain.
• D) Since this does not qualify as a reorganization, Van recognizes a $150,000 gain.

Analyze the cost-benefit aspects of offshoring including labor, capital, and freight cost implications.

Comprehend the complexity of decision trees in supply chain decision-making.

Evaluate the effectiveness of simulation methods in decision-dependent scenarios.

Grasp the significance of discounted cash flow analysis for comparing financial values of cash flows.

---

Definitions:

Unemployment

A situation where individuals who are able and willing to work cannot find jobs, measured as a percentage of the labor force.

Expansionary Fiscal Policy

Government policy aimed at stimulating economic growth by increasing government spending, reducing taxes, or both.

Contractionary Monetary Policy

A monetary policy strategy used by central banks to reduce inflation and cool an overheating economy by increasing interest rates and reducing the supply of money.

Politicians

Individuals involved in politics, especially those holding or seeking office in government.