GreenCo transfers $400,000 of its common voting stock and $50,000 cash to CurryCo in exchange for 80% of CurryCo's assets.CurryCo uses all of its remaining assets and the cash received from GreenCo to pay its liabilities.CurryCo then distributes the GreenCo stock to its shareholders in exchange for all of their shares of CurryCo.Lastly,CurryCo liquidates.This restructuring qualifies as a:

Question

Quizplus · Accepted Answer

This restructuring qualifies as a "Type C" reorganization, which involves the acquisition of substantially all of the properties of one corporation by another corporation in exchange for voting stock and a limited amount of other consideration (boot), followed by the liquidation of the acquired corporation.

GreenCo Transfers $400,000 of Its Common Voting Stock and $50,000