Melon Corporation Makes Its First Purchase of 30% of Hill

question 89

Multiple Choice

Melon Corporation makes its first purchase of 30% of Hill Corporation stock on July 31 of this year. Melon Corporation uses a calendar tax year. To use the Sec. 338 election, Melon Corporation must purchase

• A)an additional 50% of Hill Corporation stock by December 31 of this year.
• B)an additional 50% of Hill Corporation stock by July 30 of next year.
• C)an additional 51% of Hill Corporation stock by December 31 of this year.
• D)an additional 51% of Hill Corporation stock by July 30 of next year.

---

Definitions:

Self-Fulfilling Prophesy

A prediction that directly or indirectly causes itself to become true, due to the positive feedback between belief and behavior.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Self-Serving Bias

The common tendency to attribute successes to personal abilities and failures to external factors.

Defensive Attribution

A psychological process by which individuals assign causes to behaviors or outcomes in a way that defends their self-esteem.