Identify Which of the Following Statements Is True

question 96

Multiple Choice

Identify which of the following statements is true.

• A)A deemed liquidation election is available when a target corporation is liquidated into its parent corporation.
• B)Corporate purchasers generally prefer Sec. 338 treatment because of the significant tax savings originating from the step-up in basis.
• C)The Sec. 338 deemed liquidation rules require that 100% of the target corporation's stock be purchased.
• D)All of the above are false.

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Definitions:

Hypnosis

A trance-like state of focused attention, reduced peripheral awareness, and an enhanced capacity to respond to suggestion.

"Truth" Serum

A substance believed to induce a state in which a person is more likely to divulge information truthfully.

Gestalt Therapy

A psychotherapeutic method that accentuates individual accountability, focusing on one's concurrent personal experiences, the relationship with their therapist, the impact of their life's social and environmental conditions, and the self-directed changes they undertake in reaction to their overall life scenario.

Mnemonist

An individual with the ability to remember an unusually large amount of information, often in great detail.