X Corporation, which desires to obtain operations of Z Corporation, reorganizes by issuing voting stock equal to 35 percent of its total outstanding stock in exchange for all the assets of Z Corporation.Z Corporation then liquidates, distributing stock of X Corporation to its shareholders in exchange for their stock in Z.This would be referred to as

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This scenario describes a "C" reorganization, which involves the acquisition of substantially all of a company's assets by another company in exchange for voting stock. The fact that X Corporation acquires all the assets of Z Corporation in exchange for its voting stock, followed by Z Corporation's liquidation and distribution of X Corporation's stock to its shareholders, fits the criteria for a "C" reorganization.

X Corporation, Which Desires to Obtain Operations of Z Corporation