The divesting firm is required to recognize a gain or loss for financial reporting purposes equal to the difference between the book value of the consideration received for the divested operation and its fair value.
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Q27: Voluntary bust-ups or liquidations by the parent
Q28: An equity carve-out is often a prelude
Q29: The parent firm generally retains control of
Q30: Equity carve-outs are similar to divestitures and
Q31: When a parent creates a tracking stock
Q33: Tracking stocks are often created to give
Q34: Spin-offs are generally immediately taxable to shareholders.
Q35: In a spin-off, the proportional ownership of
Q36: In general, a voluntary bust-up or liquidation
Q37: A split-up involves the creation of a
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