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Loser Corporation Has Outstanding Bonds of $800,000 and Assets Valued

Question 73

Multiple Choice

Loser Corporation has outstanding bonds of $800,000 and assets valued at $600,000.It also has a $200,000 NOL and capital loss carryovers of $160,000.Loser is solely owed by Dai Won.Loser is restructured and the successor company is LouderCo.Which of the following statements is false?


A) This transaction qualifies as a "Type G" reorganization.
B) LouderCo can utilize the full amount of Loser's NOL and capital loss carryover,if it elects to reduce the basis in the transferred depreciable assets by the amount of the debt relief it receives.
C) Dai Won must receive a controlling interest in LouderCo for the restructuring to qualify as a tax-free reorganization.
D) The bondholders of Loser become shareholders of LouderCo.
E) All of the above statements are true.

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