Shareholders in Boxer Corporation Exchange All of Their Nonvoting Class

question 33

Multiple Choice

Shareholders in Boxer Corporation exchange all of their nonvoting Class B common stock for additional shares of Boxer's Class A common stock. Which of the following statements is correct?

• A)If boot is added to the exchange, the entire gain realized on the exchange is recognized in full.
• B)The exchange is a Type F reorganization, assuming all requirements are met.
• C)The exchange is tax-free even if no plan of reorganization has been created.
• D)The basis of the Class A common stock received is equal to its FMV.

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Definitions:

High Pitch

A sound that is perceived as having a high frequency.

Auditory Ossicles

A group of three small bones in the middle ear (the malleus, incus, and stapes) that transmit sound vibrations from the eardrum to the inner ear.

Conductive Hearing Loss

A type of hearing loss resulting from problems with the ear canal, eardrum, or middle ear that prevent sound from being carried effectively to the inner ear.

Sinus Infections

Inflammation or infection of the air cavities within the passages of the nose, which can lead to facial pain, headache, and nasal congestion.