With respect to an exchange of shares in an ITA 86 reorganization, which of the following statements is NOT correct?
A) The cost of the new shares will be equal to the cost of the old shares, reduced by the non-share consideration received.
B) The PUC of the new shares will be equal to their legal stated capital.
C) The proceeds of redemption will be equal to the PUC of the new shares, plus any non-share consideration received.
D) The proceeds of disposition will be equal to the cost of the new shares, plus any non-share consideration received.
Correct Answer:
Verified
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