Pallid Swift, Inc

question 87

Multiple Choice

Pallid Swift, Inc., is an S corporation located in Colorado. In the past year, PallidSwift has become profitable; but due to its rapid growth, Pallid Swift has no excess cash for distributions. Therefore, Pallid Swift decides that it should become a C corporation.

• A)This transaction qualifies as a "Type F" reorganization.
• B)This transaction qualifies as a "Type E" reorganization.
• C)This change has no tax significance for Federal purposes.
• D)This change is a taxable event.
• E)None of the above.

---

Definitions:

Negligence

The lack of due diligence that a reasonable person would demonstrate under comparable conditions, leading to injury or damage.

Manufacturer Prevail

This term is not standard, but it could refer to situations where a manufacturer's preferences or decisions override those of other parties in business contexts.

Unreasonably Dangerous

A legal standard for products or activities that present a high risk of harm, beyond what an ordinary consumer would reasonably expect.

Electrical Shock

Electrical shock is the physiological reaction or injury caused by electric current passing through the human body.