Opal exchanges her 1,000 shares of voting stock with a value of $100,000 for 100 bonds each with a face value of $1,000.This qualifies as a tax-free "Type E" reorganization.

Name: Opal exchanges her 1,000 shares of voting stock with a value of $100,000 for 100 bonds each with a face value of $1,000.This qualifies as a tax-free "Type E" reorganization.
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Question

Quizplus · Accepted Answer

While an exchange of bonds for stock qualifies as a "Type E" reorganization,stock for bonds does not qualify.

Opal Exchanges Her 1,000 Shares of Voting Stock with a Value