Which type of reorganization is a recapitalization?
A)Type B
B)Divisive Type D
C)Type C
D)Type E

Question

Quizplus · Accepted Answer

Recapitalization is considered a Type E reorganization under the U.S. Internal Revenue Code. This type involves a change in the capital structure of a corporation, such as exchanging preferred stock for common stock or vice versa, without fundamentally altering the corporation's business operations or ownership structure.

Which Type of Reorganization Is a Recapitalization