Which of the Following Statements Regarding "Type B" Reorganizations Is

question 116

Multiple Choice

Which of the following statements regarding "Type B" reorganizations is true?

• A)Since a parent-subsidiary relationship is created, the tax attribute carryover limitations are problematic.
• B)The acquisition of liabilities can cause problems when the liabilities of the target are greater than 20% of the total consideration and the acquiring owned target stock prior to the "Type B" reorganization.
• C)The acquisition of common and preferred target stock by the acquiring can be directly from the shareholders or from the target corporation.
• D)The acquiring corporation must distribute the target stock it obtains to its shareholders. The acquiring shareholders do not always have to turn in acquiring stock in exchange for the target stock.
• E)All of the above statements are true.

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