Table Corporation transfers one- half of its assets to Chair Corporation in exchange for 100% of Chair Corporation's single class of stock. Following the exchange, Table Corporation distributes the Chair stock ratably to its shareholders. This transaction will constitute a

Question

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This transaction is a divisive Type D reorganization because Table Corporation transfers assets to Chair Corporation in exchange for stock, and then distributes that stock to its shareholders, effectively splitting the company.

Table Corporation Transfers One- Half of Its Assets to Chair