If a parent corporation makes a § 338 election, the subsidiary recognizes gains and losses as result of a deemed sale of its assets.

Name: If a parent corporation makes a § 338 election, the subsidiary recognizes gains and losses as result of a deemed sale of its assets.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

When a parent corporation makes a § 338 election, the subsidiary is treated as if it has sold all its assets and reacquired them at a new basis. As a result, any gains or losses are recognized by the subsidiary.

If a Parent Corporation Makes a § 338 Election, the Subsidiary