Question

Liabilities are problematic only in the ____________________ reorganization when the ____________________ corporation transfers other property (boot) as well as stock to the target.

Federal bankruptcy legislation created the Type ____________________ reorganization. To qualify for this type of reorganization, the corporation must be ____________________ before the reorganization.

In a ____________________ reorganization, shareholders may exchange preferred stock for common or common for preferred stock.

Changing from an S corporation to a C corporation is a Type ____________________ reorganization.

In a ____________________ reorganization, each corporation must obtain the approval of the majority of its shareholders. The acquiring corporation must assume at least ____________________ percent of the target’s liabilities.

Answer 1

Accounting

Liabilities are problematic only in the Mergers reorganization when the consolidations corporation transfers other property (boot) as well as stock to the target.

Federal bankruptcy legislation created the Type Transfer of Assets reorganization. To qualify for this type of reorganization, the corporation must be transfer before the reorganization.

In a Recapitalization reorganization, shareholders may exchange preferred stock for common or common for preferred stock.

Changing from an S corporation to a C corporation is a Type   Identity Change reorganization.

In a Recapitalization reorganization, each corporation must obtain the approval of the majority of its shareholders. The acquiring corporation must assume at least 80% percent of the target’s liabilities.