What is the difference in the treatment of liabilities between a ‘‘Type A’’ and a ‘‘Type C’’ reorganization?

What is the difference in the treatment of liabilities between a ‘‘Type A’’ and a ‘‘Type C’’ reorganization?

Click here for the solution: What is the difference in the treatment of liabilities between a ‘‘Type A’’ and a ‘‘Type C’’ reorganization?

Through a "Type A" reorganization, VizslaCo acquires 100% of Puli Corporation by exchanging 30% of its stock for all of Puli's assets and liabilities

Through a "Type A" reorganization, VizslaCo acquires 100% of Puli Corporation by exchanging 30% of its stock for all of Puli's assets and liabilities. The VizslaCo. stock was exchanged for all of the Puli shareholders. Then Puli liquidated. The net value of Puli's assets at the time of the restructuring was $500,000, and the Federal long-term tax-exempt rate was 5%. Puli held business tax credit carryovers of $61,250. If VizslaCo is always in the 35% tax bracket, what is the value of these credits to VizslaCo., assuming that it uses a discount rate of 8%?

Click here for the solution: Through a "Type A" reorganization, VizslaCo acquires 100% of Puli Corporation by exchanging 30% of its stock for all of Puli's assets and liabilities

Through a "Type B" reorganization, Golden Corporation acquired 90% of RetrieverCo stock by October 2 of the current tax year ending December 31

Through a "Type B" reorganization, Golden Corporation acquired 90% of RetrieverCo stock by October 2 of the current tax year ending December 31. At the time the 90% was acquired, RetrieverCo was worth $800,000 and the Federal long-term tax-exempt rate was 3%. RetrieverCo holds captial loss carryovers of $50,000. If Golden reports taxable income of $300,000 which includes $30,000 of capital gains, how much of the RetrieverCo capital loss carryover may Golden use in the current year to offset its income?

Click here for the solution: Through a "Type B" reorganization, Golden Corporation acquired 90% of RetrieverCo stock by October 2 of the current tax year ending December 31