Identify Which of the Following Statements Is True

question 43

Multiple Choice

Identify which of the following statements is true.

• A)Ann, Dewey Corporation's sole shareholder, exchanges her Dewey stock having a $400,000 FMV and a $175,000 adjusted basis for $350,000 of Heider Corporation stock and $50,000 cash. Ann realizes a $225,000 gain on the stock transfer, none of which is recognized.
• B)A Type B reorganization can be accomplished without formal shareholder approval.
• C)The target corporation's tax attributes are lost in a Type B reorganization.
• D)All of the above are false.

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Definitions:

Divisionalized Structures

Refers to an organizational framework where operations are segregated based on divisions, each focusing on a specific product line or market sector.

Geographically Based

Pertaining to, or determined by, geographic locations or areas, often used in contexts relating to distribution or organization by place.

Client-Based

A focus on understanding and meeting the specific needs of clients or customers.

Global Companies

Businesses that operate and compete in more than one country, facing unique challenges such as cultural differences and international regulations.