Rocky Is a Party to a Tax-Free Asset-For-Stock Reorganization

question 62

Multiple Choice

Rocky is a party to a tax-free asset-for-stock reorganization. As part of the transaction, Rocky exchanges 100% of the Hope Corporation stock with a $40,000 basis and a $50,000 FMV for Moth Corporation stock worth $40,000 and $10,000 cash. Hope Corporation is subsequently liquidated as part of the reorganization, with Moth receiving the Hope assets and liabilities. Rocky is

• A)not required to recognize any gain or loss.
• B)required to recognize capital gain or dividend income of $10,000, depending on Hope Corporation's current and accumulated E&P and Rocky's postacquisition interest in Moth Corporation.
• C)required to recognize dividend income of $10,000 if Hope Corporation's current and accumulated E&P is at least $10,000.
• D)able to recognize capital gain income of $10,000 without regard to his post-acquisition interest in Moth Corporation.

Learn about conservation strategies, including in situ and ex situ techniques.

Grasp the significance of biological diversity and ecosystem services.

Understand the legal definitions and conservation status of species (endangered, threatened).

Recognize the role of environmental sustainability in conserving biodiversity.

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Definitions:

Clastic Rock

Sedimentary rocks that are composed of fragments or clasts of pre-existing minerals and rock.

Crystalline Rock

Rock characterized by the presence of crystals or a granular texture, typically formed through the cooling and solidification of magma or lava.

Clastic Rock

is a type of sedimentary rock that is composed of fragments of pre-existing rocks.

Human-Made

Created, caused, or influenced by humans rather than occurring in nature; synthetic or artificial.