Solutions Chapter 7
CHAPTER 7
CORPORATIONS: REORGANIZATIONS
SOLUTIONS TO PROBLEM MATERIALS
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1 LO 1 IRS Letter Ruling Unchanged 1 2 LO 1 Reorganizations follow tax law Unchanged 2 3 LO 1 Types of reorganizations Unchanged 3 4 LO 2 Comparing like-kind exchange to corporate New reorganization 5 LO 2 Four-column template Unchanged 5 6 LO 1, 2, 3 Reorganization: tax attributes Unchanged 6 7 LO 3 “Type A” merger “Type A” consolidation New 8 LO 3 “Type B” reorganization New 9 LO 3 “Type A” and “Type C” reorganizations Unchanged 9 10 LO 3 “Type C” reorganizations New 11 LO 3 “Type D” reorganizations Unchanged 11 12 LO 3 “Type E” reorganization New 13 LO 3 “Type F” reorganization Unchanged 13 14 LO 3 “Type G” reorganization Unchanged 14 15 LO 4 Judicial doctrines Unchanged 15 16 LO 4 Judicial doctrines Unchanged 16 17 LO 3, 4 “Type D” reorganizations and step Unchanged 17 transaction doctrine 18 LO 5 Exceptions to § 381 limitation New 19 LO 5 Problematic assumptions of liabilities Unchanged 19 20 LO 5 Owner and equity shifts Unchanged 20 21 LO 5 Formulas for § 382 limitation Unchanged 21 22 LO 5 Excess credit § 382 limitation computation Unchanged 22 23 LO 5 E & P carried to successor Unchanged 23 24 LO 5, 6 Net present value of NOL Unchanged 24 25 LO 5, 6 Net present value of business credits Unchanged 25 26 LO 3 Classify as to type of reorganization Unchanged 26 27 LO 2 Gain taxable as stock redemption Unchanged 27 28 LO 2 Character of bondholder gain Unchanged 28 29 LO 2 Reorganization gain, loss, and basis Unchanged 29 determination 30 LO 2, 3 Stocks and bonds received in a “Type E” Unchanged 30 reorganization
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31 LO 2 Gain recognition and basis computation Unchanged 31
CORPORATIONS: REORGANIZATIONS
SOLUTIONS TO PROBLEM MATERIALS
Status: Q/P
Question/
Learning
Present in Prior
Problem
Objective
Topic
Edition
Edition
1 LO 1 IRS Letter Ruling Unchanged 1 2 LO 1 Reorganizations follow tax law Unchanged 2 3 LO 1 Types of reorganizations Unchanged 3 4 LO 2 Comparing like-kind exchange to corporate New reorganization 5 LO 2 Four-column template Unchanged 5 6 LO 1, 2, 3 Reorganization: tax attributes Unchanged 6 7 LO 3 “Type A” merger “Type A” consolidation New 8 LO 3 “Type B” reorganization New 9 LO 3 “Type A” and “Type C” reorganizations Unchanged 9 10 LO 3 “Type C” reorganizations New 11 LO 3 “Type D” reorganizations Unchanged 11 12 LO 3 “Type E” reorganization New 13 LO 3 “Type F” reorganization Unchanged 13 14 LO 3 “Type G” reorganization Unchanged 14 15 LO 4 Judicial doctrines Unchanged 15 16 LO 4 Judicial doctrines Unchanged 16 17 LO 3, 4 “Type D” reorganizations and step Unchanged 17 transaction doctrine 18 LO 5 Exceptions to § 381 limitation New 19 LO 5 Problematic assumptions of liabilities Unchanged 19 20 LO 5 Owner and equity shifts Unchanged 20 21 LO 5 Formulas for § 382 limitation Unchanged 21 22 LO 5 Excess credit § 382 limitation computation Unchanged 22 23 LO 5 E & P carried to successor Unchanged 23 24 LO 5, 6 Net present value of NOL Unchanged 24 25 LO 5, 6 Net present value of business credits Unchanged 25 26 LO 3 Classify as to type of reorganization Unchanged 26 27 LO 2 Gain taxable as stock redemption Unchanged 27 28 LO 2 Character of bondholder gain Unchanged 28 29 LO 2 Reorganization gain, loss, and basis Unchanged 29 determination 30 LO 2, 3 Stocks and bonds received in a “Type E” Unchanged 30 reorganization
Status: Q/P
Question/
Learning
Present in Prior
Problem
Objective
Topic
Edition
Edition
31 LO 2 Gain recognition and basis computation Unchanged 31