Identify Which of the Following Statements Is True

Identify which of the following statements is true.

A) The total basis of the target corporation's assets following a Sec. 338 election in general equals the amount paid for the target corporation's stock minus the target corporation's liabilities.
B) The residual method ensures that any premium paid for the target stock is reflected in depreciable assets.
C) The allocation of the total basis of the target corporation's assets to the individual assets following a Sec. 338 election occurs under the residual method.
D) All of the above are false.