In a Sec.338 Election,the Target Corporation

question 22

Multiple Choice

In a Sec.338 election,the target corporation

• A)will no longer file a separate return.
• B)must use the preacquisition tax year.
• C)will have a holding period for assets beginning on the day after the acquisition date.
• D)is considered to be a continuation of the old target corporation for purposes of the tax attribute carryover rules.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Financing Activities

These are transactions involving raising capital and repaying investors, including payments of dividends, issuing shares, and borrowing or repaying debt.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the company's profits and assets.

Additional Paid-in Capital

The amount of equity in a company that shareholders have contributed in addition to the nominal or par value of the shares.