Which of the following statements is correct with respect to the § 338 election? a. The parent recognizes no gain (loss) as a result of the election. b. The subsidiary corporation makes the § 338 election. c. A qualified stock purchase occurs when a corporation acquires in a taxable transaction at least 80% of the stock (voting power and value) of another corporation within an 18-month period. d. Gain but not loss is recognized by the subsidiary as a result of a deemed sale of its assets.
Which of the following statements is correct with respect to the § 338 election? a. The parent recognizes no gain (loss) as a result of the election. b. The subsidiary corporation makes the § 338 election. c. A qualified stock purchase occurs when a corporation acquires in a taxable transaction at least 80% of the stock (voting power and value) of another corporation within an 18-month period. d. Gain but not loss is recognized by the subsidiary as a result of a deemed sale of its assets.
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 4BCRQ
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Which of the following statements is correct with respect to the § 338 election?
a. The parent recognizes no gain (loss) as a result of the election.
b. The subsidiary corporation makes the § 338 election.
c. A qualified stock purchase occurs when a corporation acquires in a taxable transaction at least 80% of the stock (voting power and value) of another corporation within an 18-month period.
d. Gain but not loss is recognized by the subsidiary as a result of a deemed sale of its assets.
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