Acquiring Corporation transfers $1 million of its voting common stock and $100,000 cash to Target Corporation in exchange for 90% of Target's assets. The assets retained by Target are used to settle its liabilities. Target then distributes the Acquiring stock and cash received to its shareholders in exchange for all their Target shares. Target then liquidates. This restructuring qualifies as a:

Question

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This restructuring qualifies as a "Type C" reorganization because it involves the acquisition of substantially all of the properties of one corporation by another corporation in exchange for voting stock of the acquiring corporation, with boot (cash or other non-stock consideration) not exceeding 20% of the total consideration.

Acquiring Corporation Transfers $1 Million of Its Voting Common Stock