Reference no: EM133335513

Assignment:

Assuming the judicial requirements are met, determine whether the following transactions qualify as a Type C reorganization:

a) Target Corporation (T) has $70,000 of operating assets and $30,000 of cash and securities held as an investment. Acquiring Corporation (P) issues its voting stock worth $70,000 in exchange for the operating assets and T liquidates, distributing the P stock and its cash and investment securities to its shareholders.

b) Same as (a), above, except that P acquires $40,000 of operating assets and $30,000 of cash and investment securities in exchange for the P voting stock. T then liquidates, distribution $70,000 of P stock and $30,000 of operating assets to its shareholders.

c) Same as (a), above, except that T has $100,000 of operating assets and $30,000 of liabilities. P issues $70,000 of its voting stock in exchange for T's assets and liabilities, and T liquidates, distributing the P stock to its shareholders.

d) Same as (c), above, except that P issues $60,000 of its voting stock and $10,000 cash in exchange for all of T's assets and liabilities, and T liquidates, distributing the P stock and cash to its shareholders.