Rabbit Corporation and Fox Corporation would like to merge into one company.Rabbit's only asset is a nontransferable chemical process that has a value of $300,000 and Rabbit has liabilities of $100,000.Fox has the manufacturing plant and experience to produce the products from Rabbit's chemical process.Its manufacturing plant has a value of $900,000 with a mortgage of $200,000.Which type of reorganization would be the most appropriate for Rabbit and Fox?
A) "Type A" consolidation reorganization.
B) "Type B" reorganization.
C) "Type C" reorganization.
D) Acquisitive "Type D" reorganization.
E) None of the above is appropriate.
Correct Answer:
Verified
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