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53. Comprehensive Problem. Determine whether the...

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53. Comprehensive Problem. Determine whether the following transactions qualify as Type C reorganizations: a.The acquisition of all assets and liabilities of Bark Inc. by Ark Inc. for 20 percent of Ark's voting preferred stock. b.Same as (a), but Ark sells 30 percent of Bark's assets within a week because they are not needed. c.The acquisition of all assets of Bark Inc. for $10 million of voting common stock, plus the assumption by Ark Inc. of $15 million of Bark's liabilities. d.The acquisition of Bark's assets for $8 million of Ark's voting common, the assumption of $2 million of liabilities, and the payment by Ark of $100 in cash. e.The acquisition of Bark's assets for $50 million of voting, cumulative convertible preferred stock. f.Same as (e), except that the consideration consists of bonds convertible at any time into voting common stock.

 

Paper#11320 | Written in 18-Jul-2015

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