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Midnight Corporation Transferred Part of Its Assets to Noon Corporation

question 9

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Midnight Corporation transferred part of its assets to Noon Corporation in exchange for all of Noon's stock. Midnight distributed all of Noon's stock pro rate to Midnight's shareholders. What is this type of reorganization?


Definitions:

High Inflation

A situation of rapidly increasing prices in an economy, reducing purchasing power over time.

High Unemployment

refers to a situation where a substantially higher percentage of the workforce is not engaged in employment, suggesting economic distress.

Inflation

The swell in the general price range for goods and services, shrinking the buying power of consumers.

Deflation

A decrease in the general price level of goods and services, often accompanied by a reduction in the money supply and credit.

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