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Solved Citron Enters Into A Type C Restructuring With Ecru Ecru PDF

Citron enters into a Type C reorganization with Ecru, transferring assets worth $1.2 million for Ecru stock worth $800,000. Citron retains land worth $130,000, distributing it to its sole shareholder. Cornell exchanges its Fulvous bond for stock in a Type A reorganization after Fulvous is acquired. Park spins off its shoe business to newly created ShoeBiz in a Type D reorganization, decreasing Park's value from $4 million to $3 million.

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153 views

Solved Citron Enters Into A Type C Restructuring With Ecru Ecru PDF

Citron enters into a Type C reorganization with Ecru, transferring assets worth $1.2 million for Ecru stock worth $800,000. Citron retains land worth $130,000, distributing it to its sole shareholder. Cornell exchanges its Fulvous bond for stock in a Type A reorganization after Fulvous is acquired. Park spins off its shoe business to newly created ShoeBiz in a Type D reorganization, decreasing Park's value from $4 million to $3 million.

Uploaded by

Anbu jaromia
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© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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(SOLVED) Citron enters into a Type C restructuring with

Ecru Ecru
Citron enters into a “Type C” restructuring with Ecru. Ecru transfers $800,000 of its voting stock
for Citron’s $1.2 million assets (basis $600,000) and $400,000 liabilities. Citron retains one
asset, land, which it distributes to its sole individual shareholder, Electra. The land is valued at
$130,000, and its basis is […]

Cornell purchased a 15-year, $25,000 bond from Fulvous Corporation for $20,000 eight years
ago. Interest of $2,300 has been amortized over the eight years and added to Cornell’s bond
basis. In the current year, Fulvous is acquired by Glaucous in a “Type A” reorganization.
Cornell exchanges his Fulvous bond for […]

Park Corporation distributes its shoe manufacturing line of business to the newly created
ShoeBiz Corporation in a transaction qualifying as a “Type D” spin-off reorganization. Before
the distribution, Park is worth $4,000,000 and its E & P balance is $630,000. After the spin-off,
Park’s value is $3,000,000 and ShoeBiz’s value […]

Whitney Corporation acquires Jessamine Corporation. Prior to the merger, Jessamine


accumulated a $12,000,000 NOL. After the reorganization, Whitney generates $30,000,000 of
taxable income. Whitney has a tax rate of 34%; the § 382 limitation does not apply. How much
does Whitney Corporation save in Federal income taxes by being able […]

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Hosha exchanges all of her Leaf stock for Petal stock plus $5,000 cash. The exchange is
pursuant to a tax-free reorganization. Hosha paid $25,000 for the Leaf stock five years ago. The
Petal stock received by Hosha has an $18,000 fair market value. a. What is Hosha’s realized
and recognized […]

Townsend, the sole shareholder of Pruett Corporation, has a $480,000 basis in his stock. He
exchanges his Pruett stock for $600,000 of Rogers voting common stock plus land with a fair
market value of $100,000 and basis of $25,000 that is transferred by Rogers to Pruett. This
exchange qualifies under […]

In a qualifying reorganization, Cato exchanges $1.2 million worth of stock and property valued
at $500,000 ($245,000 basis) for all of Firestar’s assets, which have a value of $1.7 million and
a $350,000 basis. Firestar distributes the property received from Cato. The exchange meets the
§ 368 requirements. a. What […]

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