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:

Monthly Income

The total earnings received on a monthly basis from all sources such as employment, investments, and entitlements.

Beer

An alcoholic beverage made from fermentation of cereal grains, commonly barley, with hops for flavoring.

Price

The price to be paid to secure a good, service, or asset.

Leftover Income

Leftover Income refers to the amount of income remaining after all expenses and taxes have been paid.