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Midnight Corporation Transferred Part of Its Assets to Noon Corporation

question 9

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Midnight Corporation transferred part of its assets to Noon Corporation in exchange for all of Noon's stock. Midnight distributed all of Noon's stock pro rate to Midnight's shareholders. What is this type of reorganization?


Definitions:

Additional Resources

Refers to extra assets or inputs available that can be used to enhance the production or efficiency of something.

Investment

Allocating resources, usually money, with the expectation of generating an income or profit.

Capital

Assets or money owned by an individual or organization, or funds available for specific purposes like establishing a company or investment.

Stocks

Shares of ownership in a corporation, representing a claim on the company's assets and earnings.

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