McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 46

Robert and Sylvia propose to have their corporation, Wolverine Universal (WU), acquire another corporation, EMU, Inc. in a tax-deferred triangular Type A merger using an acquisition subsidiary of WU.The sole shareholder of EMU, Edie Eagle, will receive $250,000 plus $150,000 of WU voting stock in the transaction.a.Can the transaction be structured as a forward triangular Type A merger? Explain why or why not.b.Can the transaction be structured as a reverse triangular Type A merger? Explain why or why not.