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Identify Which of the Following Statements Is True

Question 57

Multiple Choice

Identify which of the following statements is true.


A) Per IRS Treasury Regulations, to qualify as a Type A reorganization, at least 40% of the total consideration used must be acquiring corporation stock.
B) A Type A reorganization has the advantage of avoiding the acquisition of unknown and contingent liabilities.
C) A merger usually involves the approval of all of the shareholders of both corporations.
D) All of the above are false.

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