Choice "d" is correct. This is a Type A reorganization in the form of a
consolidation (e.g., A + B = C). Generally, no gain or loss is recognized by the
shareholders of the various corporations except when they receive cash or other
consideration in addition to the stock or securities. In addition, no gain or
loss is recognized by the acquired corporations or the acquiring corporation
pursuant to a tax-free reorganization.
Choices "b", "a", and "c" are incorrect, per the above explanation.
