During the Current Year, Goldfinch Corporation Purchased 100% of the Stock

question 55

Multiple Choice

During the current year, Goldfinch Corporation purchased 100% of the stock of Dove Corporation and made a
Qualified election under § 338. Which of the following statements is incorrect with respect to the § 338 election?

• A) Dove is treated as a new corporation as of the day following the qualified stock purchase date.
• B) Dove must be liquidated pursuant to the § 338 election.
• C) Dove Corporation is treated as having sold its assets on the qualified stock purchase date.
• D) Dove can recognize gain or loss as a result of the § 338 election.
• E) None of the above.

Grasp the relationship between financial policy decisions and their impact on financial stability.

Understand the roles and functions of investment banks in the issuance of new stocks and bonds.

Comprehend the disadvantages and regulatory requirements associated with a company going public.

Distinguish between primary and secondary markets for securities.

---

Definitions:

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain.

Auditory Cortex

Portion of the cerebral cortex that is responsible for the conscious sensation of sound; in the dorsal portion of the temporal lobe within the lateral fissure and on the superolateral surface of the temporal lobe.

Vestibulocochlear Nerve

The eighth cranial nerve that transmits sound and equilibrium (balance) information from the inner ear to the brain.

Temporal Lobe

A region of the cerebral cortex involved in processing auditory information and encoding memory.