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    Type A Reorganization

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    Shipyard Corp. acquired Boatworks Corp. in a Type A reorganization on October 19, 2011. On the date of acquisition, Boatworks had a deficit in its earnings and profits of $30,000. Although Shipyard had no accumulated earnings and profits, its current earnings and profits from its calendar year 2011 operations totaled $40,000. What amount of the acquired earnings and profits deficit of $30,000 can be used to offset Shipyard's current earnings and profits for 2011?

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    https://brainmass.com/business/accounting/type-reorganization-495815

    Solution Preview

    The full $30,000 will be used to offset Shipyard's current earnings and profits for 2011. According to the Internal ...

    Solution Summary

    This solution explains the total amount that can be used to offset Shipyard's current earnings and profits for 2011.

    $2.19

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