Widget owes $200 (in the form of 20-year bonds held by Ligget Corporation with an adjusted basis of $190) and has EP of $200.

Widget owes $200 (in the form of 20-year bonds held by Ligget Corporation with an adjusted basis of $190) and has E&P of $200. Assume that each Widget share is worth $10 and that property exchanged therefor is worth $10. Assume that each transaction has a proper business purpose, there is a continuity of Widget’s business enterprise, the transaction is pursuant to a plan of reorganization and the face amount of debt is its FMV. XYZ Corporation is a publicly held corporation whose stock is traded on the New York Stock Exchange (NYSE). What are the tax consequences to Alexa, Bernard, Curtis, Ligget Corporation and XYZ Corporation?

a.      On January 2 of the current year, XYZ Corporation acquires all of the Widget Corporation common stock from Alexa, Bernard and Curtis, as a result of separate negotiations with each shareholder, solely in exchange for voting preferred stock of XYZ.

b.     Assume instead that Widget is a public company, and that XYZ acquires 100% of Widget’s stock by a public tender offer (cash) and immediately liquidates Widget.

c.      Assume for b. that XYZ also purchases the Widget bonds from Ligget for $200 cash.

d.     Assume instead for b. that XYZ swaps its own 15-year registered bonds for the Widget bonds held by Ligget.

e.      Assume in b. above, that XYZ also agrees to advance $100 in cash to Widget.

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10