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:

Purchased Materials

Goods and components bought from external suppliers for use in manufacturing processes or for resale.

Commodity Manager

A professional responsible for procuring raw materials, goods, or services in a specific commodity area, often focusing on strategy, supplier selection, and price negotiation.

Reshoring

The practice of bringing manufacturing and production back to a company's original country from overseas to improve control and reduce costs.

Global Sourcing

The practice of sourcing goods and services from the global market, exploiting global efficiencies in the cost and quality of products and services.