Acquiring Corporation transfers $1 million of its voting common stock and $100,000 cash to Target Corporation in exchange for 90% of Target's assets. The assets retained by Target are used to settle its liabilities. Target then distributes the Acquiring stock and cash received to its shareholders in exchange for all their Target shares. Target then liquidates. This restructuring qualifies as a:

Type C” reorganization

Explanation:

The restructuring qualifies as “Type C” reorganization because minimum 80% of assets of Target are obtained with Acquiring stock. At least 90% of the net assets and 70% of the gross assets are transferred from Target for Acquiring stock of voting. The exchange does not qualifies as a “Type A” as none of the liabilities are assumed by Acquiring. Therefore, the restructuring qualifies as “Type C” reorganization.

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;