Identify Which of the Following Statements Is True

question 38

Multiple Choice

Identify which of the following statements is true.

• A)When the acquiring corporation makes the Sec. 338 election, the target corporation is treated in many respects as a new corporation.
• B)A Sec. 338 election requires the adoption of the old target corporation's tax year by the new target corporation.
• C)Tax attributes of the target corporation are not lost when a Sec. 338 deemed liquidation election is made.
• D)All of the above are false.

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Definitions:

Limited Jurisdiction Courts

Courts that have authority over specific types of cases, often with restrictions on the geographical area, monetary limits, or subject matter.

Abuse of Discretion

Occurs when a decision is made by a court or public official that is arbitrary, unreasonable, or not based upon legal principles.

State Supreme Courts

The highest judicial bodies within the individual states in the United States of America, responsible for overseeing and ruling on matters of state law.

Subject Matter Jurisdiction

The power of a court to hear a particular type of case.