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:

Hopi

A Native American tribe primarily residing in northeastern Arizona, recognized for their rich cultural traditions, cliff dwellings, and skilled artistry, particularly in pottery and weaving.

Irrigation

The artificial application of water to land to assist in the production of crops.

Zheng He

A Chinese mariner, explorer, diplomat, and fleet admiral during China's early Ming Dynasty, who led expeditions throughout Southeast Asia, South Asia, the Middle East, and East Africa from 1405 to 1433.

Africa

The world's second-largest and second-most populous continent, rich in cultural diversity, natural resources, and history.