37 . The acquiring corporation does not obtain the target corporation?s tax attributes in a
| a. Type A reorganization. |
| b. Type B reorganization. |
| c. Code Section 332 liquidation. |
| d. The acquiring corporation obtains the target’s tax attributes in all of the above. |
38. Conway Corporation sells its entire business to Acquirer for total proceeds of $10,000. Conway Corporation’s basis in its business assets is $2,000. The determination of whether the gain is taxable as ordinary income or capital gain depends on:
| a. the type of assets sold. |
| b. the nature of Conway Corporation’s business operations, that is, how it has used those assets. |
| c. the holding period for the assets. |
| d. all of the above. |
39. Kim exchanges stock he owns in Cardinal Corporation for stock in Robin Corporation plus a bond worth $3,600 (principal amount of $3,000). The exchange is pursuant to a corporate reorganization of both corporations that meets all of the requirements to qualify as a reorganization under Code Section 368(a)(1). Kim paid $61,600 for the stock in Cardinal Corporation four years ago. The Robin Corporation stock is worth $60,000. Kim recognizes gain on the transaction of
| a. $0. |
| b. $2,000. |
| c. $3,000. |
| d. $3,600. |
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