Cuckoo Corporation Has Just Lost a $500,000 Product Liability Suit

Cuckoo Corporation has just lost a $500,000 product liability suit. Before the lawsuit, its assets were valued at $600,000 basis of $400,000) , and it had general liabilities of $300,000 and $100,000 of bonds outstanding. It also has a $50,000 capital loss carryover, $10,000 general business credits, and $150,000 NOL. Cuckoo is solely owed by Emmy Lou. A state restructuring creates Turaco as the successor company to Cuckoo. Which of the following statements is false?

A) This transaction qualifies as a "Type G" reorganization.
B) Emmy Lou may not receive any stock in Turaco in the restructuring.
C) When Turaco reduces Cuckoo's tax attributes for the cancellation of debt income relief, it first reduces the capital loss, then the NOL, then the business credit, and last the basis in the assets.
D) The bondholders of Cuckoo become shareholders of Turaco.
E) All of these statements are true.