Which of the Following Statements Regarding Spin-Offs and Carve-Outs Is

Multiple Choice

Which of the following statements regarding spin-offs and carve-outs is not true?

A) Spin-offs are not taxed if the shareholders of the parent company are given a majority of shares in the new company.
B) Spin-offs are not taxed if the shareholders of the parent company are given at least 80 percent of the shares in the new company.
C) Gains or losses from carve-outs are taxed at the corporate tax rate.
D) In carve-outs, the parent company retains majority control.