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  3. Study Set
    Federal Taxation
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    Exam 7: Corporations: Reorganizations
  5. Question
    If the Target Corporation in a Reorganization Has a Deficit
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If the Target Corporation in a Reorganization Has a Deficit

Question 106

Question 106

True/False

If the target corporation in a reorganization has a deficit in earnings and profits, any gains recognized by the shareholders are treated as stock redemptions and not as dividends.

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