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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:
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Becker CPA Review, PassMaster Questions
Lecture: Regulation 3 b.
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
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.
- Fall '10
- The Land