Reference no: EM132950731

Questions -

Q1. You are the Chief Financial Officer of Arian Corporation (AC). The board of directors of your company is planning to take control of Ezekiel Corporation (EC). Your company has been holding 10% interest in Ezekiel for the past years. Now, to achieve your company's goal of taking control over EC, suggest a possible tax-free exchange that your company may enter.

Q2. You are one of the tax lawyers of Virtuoso Firm. Anna Corporation (AC) approached you for a piece of advice about its plan of purchasing all the assets of Veronica Corporation (VC). AC has informed the board of directors of VC about its plan, to which the latter agreed. Discuss the steps that AC and VC must take to achieve their plan.

Q3. You are one of the corporate shareholders of Tanya Corporation (TC). The majority of the voting common stockholders agreed to sell their shares to Yanna Corporation (YC). Cite a possible transaction that you may enter to avail the benefits given in the provisions of Section 40 (C) (2) of the Philippine Tax Code.

Q4. On January 1, 20X1, Anna and Sansa Corporation agreed to a merger. After the merger, Sansa Corporation will be dissolved. Anna Corporation has an asset of P10 billion and a sale of P600 million. The companies plan to take the merger on January 26, 20X1, two (2) days before the founding anniversary of Anna Corporation. Discuss the possible action that Anna Corporation to maximize its value.