Melon Corporation Makes Its First Purchase of 30% of Hill

question 89

Multiple Choice

Melon Corporation makes its first purchase of 30% of Hill Corporation stock on July 31 of this year. Melon Corporation uses a calendar tax year. To use the Sec. 338 election, Melon Corporation must purchase

• A)an additional 50% of Hill Corporation stock by December 31 of this year.
• B)an additional 50% of Hill Corporation stock by July 30 of next year.
• C)an additional 51% of Hill Corporation stock by December 31 of this year.
• D)an additional 51% of Hill Corporation stock by July 30 of next year.