Which of the following statements is true concerning all types of tax-free corporate reorganizations?
A) Assets are transferred from one corporation to another.
B) Stock is exchanged with shareholders.
C) Liabilities that are assumed when cash is also used as consideration will be treated as boot.
D) Corporations and shareholders involved in the reorganization will recognize gains but not losses.
E) None of the above statements is true.

Question

Quizplus · Accepted Answer

In tax-free corporate reorganizations, gains or losses are generally not recognized by corporations or shareholders, and liabilities assumed do not automatically result in boot unless cash or other property is involved.

Which of the Following Statements Is True Concerning All Types