Avocado Corporation and Tomato Corporation want to join forces as one corporation because their businesses are complimentary.They would like the resulting corporation to have a new name because both of them have been involved in high profile lawsuits due to environmental issues.Avocado is a manufacturer with a basis in its assets of $2 million (value of $2.9 million)and liabilities of $500,000.Tomato is a distributor of a variety of products including those of Avocado's.Its basis in its assets is $1.2 million (value of $2 million)and has liabilities of $400,000.Given these facts,what type of reorganization would you suggest for Avocado and Tomato?

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The Answer of Avocado Corporation and Tomato Corporation want to join forces as one corporation because their businesses are complimentary.They would like the resulting corporation to have a new name because both of them have been involved in high profile lawsuits due to environmental issues.Avocado is a manufacturer with a basis in its assets of $2 million (value of $2.9 million)and liabilities of $500,000.Tomato is a distributor of a variety of products including those of Avocado's.Its basis in its assets is $1.2 million (value of $2 million)and has liabilities of $400,000.Given these facts,what type of reorganization would you suggest for Avocado and Tomato?

Avocado Corporation and Tomato Corporation Want to Join Forces as One