After a takeover, the parent takes a fair market value cost basis in the subsidiary, for both book and tax purposes.

Name: After a takeover, the parent takes a fair market value cost basis in the subsidiary, for both book and tax purposes.
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In a takeover, the parent company typically records the subsidiary's assets and liabilities at fair market value for book purposes, but tax basis may differ due to specific tax regulations and elections.

After a Takeover, the Parent Takes a Fair Market Value