In a qualified reorganization:
A)Gain is generally deferred.
B)Only stock can be exchanged for stock.
C)One corporation must acquire all the assets of another corporation.
D)Two or more corporations are always involved.

Question

Quizplus · Accepted Answer

In a qualified reorganization, gain is generally deferred, meaning that the recognition of gain is postponed until a later event, such as the sale of the stock received in the reorganization.

In a Qualified Reorganization