S and P each owns 50 shares of the outstanding stock of G Corporation which specializes in framing pictures.G owns all 100 shares of the outstanding stock of W Corporation.S and P caused G to form W many years ago to manufacture frames.This year S and P have decided to divide the corporate assets and part ways.To this end, G distributed all of the stock in W Corporation to S for all of her stock in G.This type of corporate division is referred to as

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A split-off is a type of corporate division where a subsidiary company is separated from the parent company and its stock is distributed to the parent company's shareholders in exchange for their shares in the parent company. In this scenario, G Corporation is the parent company and W Corporation is the subsidiary company. S and P own all the stock in G Corporation and caused G to form W Corporation. When S and P decided to part ways, G Corporation distributed all the stock in W Corporation to S for all of her stock in G Corporation. This transaction is an example of a split-off.

S and P Each Owns 50 Shares of the Outstanding