Which of the following statements is correct with respect to the § 338 election?
A)The parent corporation makes the § 338 election.
B)A qualified stock purchase occurs when a corporation acquires, in a taxable transaction, at least 80% of the stock (voting power and value) of another corporation within a 18-month period.
C)The subsidiary corporation must be liquidated pursuant to the § 338 election.
D)Gain, but not loss, is recognized by the subsidiary as a result of a deemed sale of its assets.
E)None of the above.

Question

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The Answer of Which of the following statements is correct with respect to the § 338 election?
A)The parent corporation makes the § 338 election.
B)A qualified stock purchase occurs when a corporation acquires, in a taxable transaction, at least 80% of the stock (voting power and value) of another corporation within a 18-month period.
C)The subsidiary corporation must be liquidated pursuant to the § 338 election.
D)Gain, but not loss, is recognized by the subsidiary as a result of a deemed sale of its assets.
E)None of the above.

Which of the Following Statements Is Correct with Respect to the §