Identify which of the following statements is true.

Question

Quizplus · Accepted Answer

Option A is correct as a Sec. 338 election results in the target corporation being treated as a new corporation for many purposes, including for tax purposes. Option B is incorrect as a Sec. 338 election does not require the adoption of the old target corporation's tax year; instead, the acquiring corporation can choose to adopt its own tax year. Option C is also incorrect as a Sec. 338 election generally results in the loss of certain tax attributes of the target corporation, such as net operating losses and tax credits. Therefore, option D is also incorrect as it suggests that all options are false.

Identify Which of the Following Statements Is True