Kidco has actively conducted two businesses for 10 years - the sale of toys and the sale of candy. Kidco wishes to protect the candy business from...

Kidco has actively conducted two businesses for 10 years – the sale of toys and the sale of candy. Kidco wishes to protect the candy business from the liabilities and risks of the toy business. Kidco thus transfers the toy business to a newly formed subsidiary, Toyco and distributes the Toyco stock to its shareholders. Under state law, transferring the toy business to Toyco will fully protect the candy business remaining in Kidco from any liabilities of the toy business, regardless of the ownership of Toyco. Result?