Match the Following Items with the Statements That Follow

Multiple Choice

Match the following items with the statements that follow. Terms may be used more than once.
-Black Corporation has been engaged in manufacturing toys and investing in high technology corporate stock for eight years. Black creates Blue and White Corporations. It transfers the toy division to Blue and the investments to White in exchange for all of each corporation's common voting stock. The stock of Blue and White is distributed to Black shareholders in return for all of their Black stock. Black then liquidates.

A) Boot
B) Business credits
C) Capital gain
D) Continuity of business enterprise
E) Continuity of interest
F) Dividend
G) Discount rate
H) Earnings and profits
I) Federal long-term tax-exempt rate
J) Liability assumption
K) Ordinary gain
L) Ownership change
M) Section 382 limitation
N) Sound business purpose
O) Step transaction