A tax-free corporate reorganization can be utilized to:
A) Transfer assets in a bankruptcy.
B) Resolve management issues by dividing a company into three new companies.
C) Combine four corporations into one.
D) Create a subsidiary.
E) All the above results are possible.

Question

Quizplus · Accepted Answer

Tax-free corporate reorganizations can be utilized for various purposes, including transferring assets in a bankruptcy, resolving management issues by dividing a company into new entities, combining multiple corporations into one, and creating subsidiaries. These actions can be structured to meet the specific requirements of the Internal Revenue Code to ensure the reorganization is conducted on a tax-free basis.

A Tax-Free Corporate Reorganization Can Be Utilized To