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:

Theories

Systematic, organized frameworks of concepts and principles designed to explain and predict phenomena.

Hypotheses

Plural of hypothesis; propositions made as a basis for reasoning, without any assumption of its truth, intended for further investigation or experiment.

Reverse Causality

A situation where the presumed effect influences the cause, complicating the understanding of the relationship between variables.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.