Roger Transfers Assets from His Sole Proprietorship to His 100%-Owned

question 39

Multiple Choice

Roger transfers assets from his sole proprietorship to his 100%-owned Motor Corporation. Immediately after the incorporation, Motor Corporation transfers all of its assets to Blue Corporation for 10% of Blue's stock. Motor Corporation is liquidated. Which of the following statements is correct?

• A)The asset transfer by Motor Corporation meets the statutory Type C reorganization requirements.
• B)The IRS may collapse the two transactions into a single transaction, resulting in denial of tax-free reorganization treatment.
• C)The IRS may apply the step transaction doctrine.
• D)All of the above statements are correct.

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Definitions:

Emotionally Impact

The significant effect or influence that events, interactions, or experiences have on an individual's emotional state.

Cultural Lens

The perspective or worldview that individuals or groups have, shaped by their cultural background, experiences, and societal influences.

Culturally Diverse

Representing a variety of cultural backgrounds, perspectives, and practices within a group or society.

Helping Relationship

A supportive interaction between two parties, typically involving guidance or assistance from one to the other.