Rosa Corporation transfers $1 million of its voting stock and $200,000 cash to Clara Corporation in exchange for 90% of its assets.Clara uses all of its remaining assets and the cash received from Rosa to pay its liabilities.Clara then distributes the Rosa stock to its shareholders in exchange for all of their shares of Clara.Lastly,Clara terminates.This restructuring qualifies as a:

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The exchange is a "Type C" reorganization,because at least 80% of the assets are transferred from Clara to Rosa for Rosa voting stock.The reorganization does not qualify as a "Type A" because none of the liabilities are assumed by Rosa.

Rosa Corporation Transfers $1 Million of Its Voting Stock and $200,000