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in Revenue Ruling 72 - 522 Corp X as the acquiring corporation acquired the shares of Y corporation the target from the Y shareholders solely in exchange for the acquiring companys shares the acquiring company transferred its voting shares to the target shareholders and the target shareholders transferred their target stock to the acquiring company after the acquisition when Corp X the acquiring company owned 100% of Corp Y Corp X contributed cash into Corp Y in exchange for additional shares of Corp Y after the contribution Corp X continued to own 100 percent of Corp Y the cash going from Corp X to Corp Y after the acquisition was not part of the transaction between Corp X and the former Corp Y shareholders since the former Corp why share holders did not directly or indirectly receive any of the cash the payment was considered to be separate from the acquisition of the stock from the target shareholders and therefore the transaction did not run afoul of the solely for voting stock re