Identify which of the following statements is true.
A) The control requirement for Sec. 355 differs from the control requirement under Sec. 351.
B) Aspect Corporation transfers assets to newly created Expert Corporation in exchange for all of Expert's stock. Shortly after the transfer, Aspect exchanges one-half of the Expert stock that it receives for land. The individuals transferring the land have never been Aspect shareholders. This transaction qualifies as a divisive Type D reorganization and is tax-free to all parties.
C) Common stock can be exchanged for preferred stock in the same corporation as a Type E reorganization.
D) All of the above are false.
C) Common stock can be exchanged for preferred stock in the same corporation as a Type E reorganization.
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Many companies use MACRS (Modified Accelerated Cost Recovery System) depreciation for
a. financial reporting purposes and a different method for tax purposes. b. financial reporting purposes because depreciation is not allowed for tax purposes. c. tax purposes because it results in a larger net income in the early years of a plant asset's life d. tax purposes because of a desire to report higher expenses in early years in order to pay lower taxes.
Estimates are based on both subjective and objective factors
a. True b. False Indicate whether the statement is true or false
A product has a reorder point of 260 units, and is ordered ten times a year on average. The following table shows the historical distribution of demand values observed during lead time
Demand Probability 240 .1 250 .2 260 .4 270 .2 280 . 1 Currently, stockouts are valued at $5 per unit per occurrence, while inventory carrying costs are $2 per unit per year. Should the firm add safety stock? If so, how much safety stock should be added?
Which of the following is true of a promotional pull strategy?
A. It is synonymous with trade advertising. B. Its promotional efforts are directed toward retailers. C. Its promotional efforts are directed toward wholesalers. D. It involves spending very little money on advertising. E. Its goal is to create demand among consumers.