The remaining 40000 is a liquidating return of

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Unformatted text preview: orporations A and B combine in a qualifying reorganization and form Corporation C, the only surviving corporation. This reorganization is tax-free to the: a. Shareholders Yes Corporation Yes 28 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 b. c. d. Yes No No No No Yes CPA-02161 Explanation Choice "a" is correct. This is a Type A reorganization in the form of a consolidation (e.g., A + B = C). Generally, no gain or loss is recognized by the shareholders of the various corporations except when they receive cash or other consideration in addition to the stock or securities. In addition, no gain or loss is recognized by the acquired corporations or the acquiring corporation pursuant to a tax-free reorganization. Choices "b", "c", and "d" are incorrect, per the above explanation. CPA-02163 Type1 M/C A-D Corr Ans: B PM#84 R 3-01 65. CPA-02163 PII May 93 #59 Page 40 The following information pertains to Lamb...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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