Which of the Following Statements Best Describes the Tax Consequences

question 31

Multiple Choice

Which of the following statements best describes the tax consequences of a §338 election?

• A)Gain or loss is recognized by the acquired corporation on the deemed sale of its assets, and the buyer gets a stepped-up basis in the assets acquired.
• B)Gain or loss is recognized by the acquired corporation on the deemed sale of its assets, and the buyer gets a carryover basis in the assets acquired.
• C)Gain or loss is not recognized by the acquired corporation on the deemed sale of its assets, and the buyer gets a stepped-up basis in the assets acquired.
• D)Gain or loss is not recognized by the acquired corporation on the deemed sale of its assets, and the buyer gets a carryover basis in the assets acquired.

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Definitions:

Alleged Discrimination

Claims or accusations of unfair treatment of individuals because of their race, age, gender, religion, or other protected characteristics without immediate proof.

Predictor Scores

Scores derived from assessments or tests that are used to forecast or estimate future performance or outcomes.

Job Candidates' Performance

The assessment of how well individuals applying for a position perform in tests or tasks related to the job.

Work Simulation

A method used in job training or assessment that replicates the actual tasks and conditions of a specific job role to provide realistic practice or evaluate skills.