Identify Which of the Following Statements Is True

question 96

Multiple Choice

Identify which of the following statements is true.

• A)A deemed liquidation election is available when a target corporation is liquidated into its parent corporation.
• B)Corporate purchasers generally prefer Sec. 338 treatment because of the significant tax savings originating from the step-up in basis.
• C)The Sec. 338 deemed liquidation rules require that 100% of the target corporation's stock be purchased.
• D)All of the above are false.

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Definitions:

Clairvoyance

The supposed ability to gain information about an object, person, location, or physical event through means other than the known human senses.

Psychometry

The science of measuring mental capacities and processes through psychological tests and assessments.

Shortest Wavelengths

Refers to the waves in the electromagnetic spectrum with the smallest distance between successive crests.

Visible Spectrum

The portion of the electromagnetic spectrum that is visible to the human eye, ranging from approximately 380 to 750 nanometers in wavelength.