CH. 1—NORMAL TAXES AND SURTAXES
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preceding sentence applies, the amount of any liability assumed by the acquiring corporation, and the amount of any liability to which any property acquired by the acquiring corporation is subject, shall be treated as money paid for the property. (C) TRANSFERS OF ASSETS TO SUBSIDIARIES IN CERTAIN PARAGRAPH (i)(A) AND (i)(c) CASES.—A transaction otherwise
qualifying under paragraph (1)(A) or paragraph (1)(C) shall not be disqualified by reason of the fact that part or all of the assets which were acquired in the transaction are transferred to a corporation controlled by the corporation acquiring such assets. (b) PARTY TO A REORGANIZATION.—For purposes of this part, the term a party to a reorganization" includes— (1) a corporation resulting from a reorganization, and (2) both corporations, in the case of a reorganization resulting from the acquisition by one corporation of stock or properties of another. In the case of a reorganization qualifying under paragraph (1)(C) of subsection (a), if the stock exchanged for the properties is stock of a corporation which is in control of the acquiring corporation, the term "a party to a reorganization" includes the corporation so controlling the acquiring corporation. In the case of a reorganization qualifying under paragraph (1)(A) or (1)(C) of subsection (a) by reason of paragraph (2)(C) of subsection (a), the term "a party to a reorganization" includes the corporation controlling the corporation to which the acquired assets are transferred. (c) CONTROL,^—For purposes of part I (other than section 304), part II, and this part, the term "control" means the ownership of stock possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote and a t least 80 percent of the total number of shares of all other classes of stock of the corporation. I
PART IV—INSOLVENCY REORGANIZATIONS 0 •
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Sec. 371. Reorganization in certain receivership and bankruptcy proceedings. Sec. 372. Basis in connection with certain receivership and bankruptcy proceedings. Sec. 373. Loss not recognized in certain railroad reorganizations.
SEC. 371. REORGANIZATION IN CERTAIN RECEIVERSHIP AND BANKRUPTCY PROCEEDINGS. •' (a) E X C H A N G E S BY CORPORATIONS. —
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(1) IN GENERAL.—No gain or loss shall be recognized if property of a corporation (other than a railroad corporation, as defined in r section 77(m) of the Bankruptcy Act (49 Stat. 922; 11 U.S.C. 205)) is transferred in pursuance of an order of the court having jurisdiction of such corporation-— ( (A) in a receivership, foreclosure, or similar proceeding, or (B) in a proceeding under chapter X of the Bankruptcy Act (52 Stat. 883-905; 11 U.S.C. chapter 10) or the corresponding ¥ provisions of prior law, to another corporation organized or made use of to effectuate a plan of reorganization approved by the court in such proceeding, in c exchange solely for stock or securities in such other corporation. §37Ua)(l) 49012°—54
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