If the Acquirer Invokes a 338 Election No Taxes Will

question 88

True/False

If the acquirer invokes a 338 election no taxes will have to be paid on any gains on assets written up to their fair market value.

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Definitions:

Proceeds

Maturity value less bank discount.

Contingent Liability

Liability on the part of one who discounts a note if the maker of the note defaults at maturity date.

Discounted Note

A debt instrument that is sold or issued for less than its face value.

Maturity Value

The sum payable to the holder of a financial instrument at the end of its term, encompassing the principal amount plus any accrued interest.