Identify Which of the Following Statements Is True

question 23

Multiple Choice

Identify which of the following statements is true.

• A)A split-off Type D reorganization occurs when part of the assets of one corporation are transferred to a controlled corporation in exchange for its stock, and shares of the controlled corporation's stock are distributed to all of the distributing corporation's shareholders without having them surrender any of their stock in the distributing corporation.
• B)In a Type D reorganization, the existence of a good corporate business purpose is necessary before the stock of a controlled subsidiary can be distributed to the shareholders of the distributing corporation.
• C)A distribution of a controlled corporation's stock can be a tax-free Type D reorganization, even if none of the distributing corporation's assets are transferred to the controlled corporation.
• D)All of the above are false.

---

Definitions:

Golgi Body

Membrane-enclosed organelle that modifies proteins and lipids, then sorts the finished products into vesicles. Shaped like a stack of pancakes.

Photosynthesis

A process used by plants and other organisms to convert light energy, usually from the sun, into chemical energy that can be later released to fuel the organism's activities.

Protist Cells

Eukaryotic organisms that are neither plants, animals, nor fungi, often unicellular, such as amoebas, algae, and protozoa.

Chloroplasts

Organelles found in plant cells and eukaryotic algae that conduct photosynthesis, capturing energy from sunlight and converting it and carbon dioxide into oxygen and energy-rich organic compounds.