Question

A. In a taxminusfree ​reorganization, the acquiring​ corporation's holding period for the acquired properties includes the period of time the target corporation held the properties. B. In a taxminusfree ​reorganization, if the acquiring corporation uses nonmonetary boot​ property, gains or losses will be recognized by the acquiring corporation. C. The receipt of cash by a shareholder results in the recognition of all of his or her realized gain even if the transaction qualifies as a taxminusfree reorganization. D. All of the above are false.

Answer 1

The correct option is "D." All of the above are false.

Step-by-step explanation:

The main use and advantage of a tax-free reorganization is to acquire or dispose of the assets of a business without generating the income tax consequences that would result in a straight sale or purchase of those assets

Answer 2

A. In a​ tax-free reorganization, the acquiring​ corporation's holding period for the acquired properties includes the period of time the target corporation held the properties.

Step-by-step explanation:

Companies msy undergo restructuring for several strategic reasons; which might be for operational efficiency bro be increased or to cut costs.

Reorganization may then be conducted for the organization to increase profits. A tax-free reorganization is mostly implemented to did efficiencies within the law that allows for a reduced tax and is often initiated by tactical actions such as acquisitions, takeover, buy-outs and implemented often with seller's mindset of looking to avoid income tax on any gains that have been realized.

There are four types of Tax-free Reorganizations which are

•Acquisitive Reorganizations

•Divisive Reorganizations

•Corporate restructuring Reorganizations

•Bankruptcy Reorganizations

In Acquisitive reorganizations, a corporation acquires another corporation and or can happen through stock acquisition or asset deal.

In A Acquisitive tax-free reorganization, there is transfer of all substantial target corporations assets tothe acquiring assets . So, the acquiring corporations holding period for the acquired properties includes the periods of time the target corporation held the properties in Acquisitive tax-free reorganization making option A to be true statement in regards to Tax-free Reorganization.