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?

Question

Quizplus · Accepted Answer

The restructuring does not require Dai Won to receive a controlling interest in LouderCo to qualify as a tax-free reorganization. A Type G reorganization involves a transfer of assets to a newly formed corporation solely in exchange for stock, with the stock of the new corporation being distributed to the shareholders of the transferring corporation. Option A is true because the transaction meets the criteria for a Type G reorganization. Option B is also true because LouderCo can utilize the full amount of Loser's NOL and capital loss carryover through a basis reduction election. Option D is not mentioned in the scenario provided and therefore cannot be determined to be true or false.

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