Distributions.
Distributions. One or more distributions to shareholders (including distribution(s) that involve the assumption of liabilities) are described in this paragraph (k)(1)(i) if
(A) The property distributed consists of—
(1) Assets of the acquired corporation, the acquiring corporation, or the surviving corporation, as the case may be, or an interest in an entity received in exchange for such assets in a transfer described in paragraph (k)(1)(ii) of this section;
(2) Stock of the acquired corporation provided that such distribution(s) of stock do not cause the acquired corporation to cease to be a member of the qualified group (as defined in § 1.368–1(d)(4)(ii)); or
(3) A combination thereof; and
(B) The aggregate of such distributions does not consist of—
(1) An amount of assets of the acquired corporation, the acquiring corporation (disregarding assets held prior to the potential reorganization), or the surviving corporation (disregarding assets of the merged corporation), as the case may be, that would result in a liquidation of such corporation for Federal income tax purposes; or
(2) All of the stock of the acquired corporation that was acquired in the transaction.
(ii) Transfers Other Than Distributions. One or more other transfers are described in this paragraph (k)(1)(ii) if—
(A) The transfer(s) do not consist of one or more distributions to shareholders;
(B) The property transferred consists of—
(1) Part or all of the assets of the acquired corporation, the acquiring corporation, or the surviving corporation, as the case may be;
(2) Part or all of the stock of the acquired corporation, the acquiring corporation, or the surviving corporation, as the case may be, provided that such transfer(s) of stock do not cause such corporation to cease to be a member of the qualified group (as defined in § 1.368–1(d)(4)(ii)); or
(3) A combination thereof; and
(C) The acquired corporation, the acquiring corporation, or the surviving corporation, as the case may be, does not terminate its corporate existence for Federal income tax purposes in connection with the transfer(s).