Shareholders in Boxer Corporation Exchange All of Their Nonvoting Class

question 33

Multiple Choice

Shareholders in Boxer Corporation exchange all of their nonvoting Class B common stock for additional shares of Boxer's Class A common stock. Which of the following statements is correct?

• A)If boot is added to the exchange, the entire gain realized on the exchange is recognized in full.
• B)The exchange is a Type F reorganization, assuming all requirements are met.
• C)The exchange is tax-free even if no plan of reorganization has been created.
• D)The basis of the Class A common stock received is equal to its FMV.

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