Which of the following statements does not describe a requirement that must be met in a tax-deferred forward triangular merger?

A. The continuity of business enterprise test must be met with respect to the target corporation.
B. The target corporation shareholders must receive voting stock in the acquiring corporation.
C. The acquirer must hold substantially all of the target corporation's properties after the merger.
D. The 40 percent continuity of interest test must be met with respect to the stock transferred from the acquisition corporation to the target corporation shareholders.


Answer: B

Business

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