A Stock Acquisition That Is Not Treated as a Purchase

question 56

Multiple Choice

A stock acquisition that is not treated as a purchase for purposes of meeting the Sec. 338 rules is

• A)stock whose adjusted basis is determined by its basis in the hands of the person from whom it was acquired.
• B)stock acquired from a decedent.
• C)stock acquired in a tax-free reorganization.
• D)All of the above are correct.

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Definitions:

Common Hepatic Duct

A duct in the liver that conveys bile from the liver to the cystic duct and then to the gallbladder.

Bile

Bile is a digestive fluid produced by the liver and stored in the gallbladder that aids in the digestion and absorption of fats in the small intestine.

Pepsinogen

The inactive precursor of pepsin, an enzyme that breaks down proteins in the stomach.

Ileocecal Valve

A valve located between the ileum (last portion of the small intestine) and the cecum (first part of the large intestine) that controls the flow of digested food.