Table Corporation Transfers One-Half of Its Assets to Chair Corporation

question 92

Multiple Choice

Table Corporation transfers one-half of its assets to Chair Corporation in exchange for 100% of Chair Corporation's single class of stock. Following the exchange, Table Corporation distributes the Chair stock ratably to its shareholders. This transaction will constitute a

• A)Type A reorganization.
• B)Type C reorganization.
• C)divisive Type D reorganization.
• D)acquisitive Type D reorganization.

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Definitions:

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service.

Marginal Productivity

The additional output that results from using one more unit of a particular input, holding all other inputs constant.

Resource Price

The cost associated with acquiring resources or inputs needed for production, such as raw materials, labor, and capital.

Anaconda Smelting Company

A historical company involved in the process of melting and refining metal ore to separate it from its impurities.