Which of the Following Statements Does Not Describe a Requirement

question 120

Multiple Choice

Which of the following statements does not describe a requirement that must be met in a tax-deferred forward triangular merger?

• A)The 40 percent continuity of interest test must be met with respect to the stock transferred from the acquisition corporation to the target corporation shareholders.
• B)The acquirer must hold substantially all of the target corporation's properties after the merger.
• C)The continuity of business enterprise test must be met with respect to the target corporation.
• D)The target corporation shareholders must receive voting stock in the acquiring corporation.

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Definitions:

Plaster

A soft mixture of lime with sand or cement and water for spreading on walls, ceilings, or other structures to form a smooth hard surface when dried.

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A sterile material used to cover a surgical or other wound.

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A life-threatening emergency arising from uncontrolled diabetes, characterized by extreme hyperglycemia or hypoglycemia.

Hyperglycemia

A condition characterized by abnormally high blood sugar levels, commonly associated with diabetes.