A tax free corporate reorganization can be utilized to:
A) Transfer assets in a bankruptcy.
B) Resolve management issues by dividing a company into three new companies.
C) Combine four corporations into one.
D) Create a subsidiary.
E) All of the above are possible.

Question

Quizplus · Accepted Answer

A tax free corporate reorganization can be utilized to transfer assets in a bankruptcy (option A), resolve management issues by dividing a company into three new companies (option B), combine four corporations into one (option C), and create a subsidiary (option D). Therefore, all the choices are possible with a tax free corporate reorganization.

A Tax Free Corporate Reorganization Can Be Utilized To