Question

Rock Corporation acquires all of the assets of Stone Corporation using only its voting stock. Stone Corporation distributes the Rock stock to its shareholders pursuant to its liquidation. After the​ acquisition, Stone​ Corporation's shareholders own​ 20% of the Rock stock​ (by voting power and​ value). The transaction is classified as a:

Answer 1

Answer: the correct answer is Type C reorganization.

Explanation:

In a type “C” reorganization, substantially all of the target corporation's assets are exchanged for voting stock in the acquiring corporation.