Identify Which of the Following Statements Is False

question 20

Multiple Choice

Identify which of the following statements is false.

• A)A Sec. 338 election usually triggers taxation to the target corporation.
• B)A Sec. 338 election must be made not later than the fifteenth day of the ninth month following the first stock acquisition in a series of acquisitions that leads to 80% or more stock ownership.
• C)When a Sec. 338 election is made, the target corporation is treated as having sold all of its assets at their FMV at the close of the acquisition date.
• D)In a Sec. 338 deemed sale election, the shareholders of the target corporation sell their stock to the acquiring corporation.

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Definitions:

Mental Image

A representation of a specific event or object, produced by the mind, that is not presently being sensed but is recalled or imagined.

Compact

An agreement or covenant between two or more parties.

Schema

Schema involves a cognitive framework or concept that helps organize and interpret information in the brain, facilitating understanding and prediction of the world.

Prototype

An original model or first form of something from which later versions are developed or copied.