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:

Simple Reflexes

Basic, involuntary motor responses to specific stimuli, evident in human behavior from an early age.

Secondary Circular Reactions

A developmental stage in infants, usually between 4 to 8 months, characterized by the repetition of actions that produce an effect on the environment, signaling the beginning of intentional behavior.

Symbolic Functioning

A cognitive development process where individuals learn to use symbols, such as language or pictures, to represent objects, actions, or ideas.

Reflex

An automatic and involuntary response to a stimulus, which is a basic mechanism of the nervous system.