A subsidiary is liquidated pursuant to § 332.The parent has held 100% of the stock in the subsidiary for the past ten years.The subsidiary has a business credit carryover of $30,000 at the time of liquidation.The parent acquires the business credit carryover.

Question

Quizplus · Accepted Answer

Under § 381,a parent acquires a subsidiary's tax attributes,including the subsidiary's business credit carryover.

A Subsidiary Is Liquidated Pursuant to § 332