Code § 384 Limits the Ability of a Loss Corporation

question 31

Multiple Choice

Code § 384 limits the ability of a loss corporation to use its loss by purchasing an acquired corporation's assets that have a built-in gain.Which one of the following statements is not a condition of § 384 regarding built-in gains?

• A)Either Target or Acquiring must have a net unrealized built-in gain.
• B)Acquiring corporation must not have an NOL carryforward.
• C)There must be a stock acquisition or asset acquisition.
• D)All of the above are conditions of § 384.

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Definitions:

Refusing Claim

The act of denying or rejecting a request, demand, or assertion, often in a formal or official context.

Negative News

Information or messages that convey unfavorable, disappointing, or unpleasant information.

Content And Tone

The substance or material dealt with in a text, speech, or work of art, and the manner in which it is expressed.

Negative Messages

Communications that convey rejection, denial, or displeasing information, often requiring careful wording to mitigate negative reactions.