Table Corporation Transfers One-Half of Its Assets to Chair Corporation

question 92

Multiple Choice

Table Corporation transfers one-half of its assets to Chair Corporation in exchange for 100% of Chair Corporation's single class of stock. Following the exchange, Table Corporation distributes the Chair stock ratably to its shareholders. This transaction will constitute a

• A)Type A reorganization.
• B)Type C reorganization.
• C)divisive Type D reorganization.
• D)acquisitive Type D reorganization.

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Definitions:

Investment Interest Expense

The cost of interest on money borrowed to purchase taxable investments, which can sometimes be deducted from income for tax purposes.

Job Hunting

The process of actively seeking new employment, including activities such as applying for jobs, networking, and interviewing.

Deductible

The amount that a taxpayer must pay out-of-pocket before an insurance company will pay any expenses.

Unreimbursed Employee Business Expenses

Expenses employees incur in the course of performing their job that are not reimbursed by the employer.