In the United States, in Order for a Spin-Off to Be

question 11

Multiple Choice

In the United States, in order for a spin-off to be nontaxable, the following must be the case:

• A) Both the parent company and the spun-off entity must be in business for at least five years before the restructuring.
• B) The subsidiary must be at least 80% owned by the parent company.
• C) The parent company and the spun-off entity must be in the same industry
• D) Both a and b
• E) Both b and c