During the Current Year, Goldfinch Corporation Purchased 100% of the Stock

question 6

Multiple Choice

During the current year, Goldfinch Corporation purchased 100% of the stock of Dove Corporation and made a qualified election under § 338. Which of the following statements is incorrect with respect to the § 338 election?

• A) Dove is treated as a new corporation as of the day following the qualified stock purchase date.
• B) Dove must be liquidated pursuant to the § 338 election.
• C) Dove Corporation is treated as having sold its assets on the qualified stock purchase date.
• D) Dove can recognize gain or loss as a result of the § 338 election.
• E) None of the above.

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