During the current year, Goldfinch Corporation purchased 100% of the stock of Dove Corporation and made a qualified election under § 338.Which of the following statements is incorrect with respect to the § 338 election?
A)Dove is treated as a new corporation as of the day following the qualified stock purchase date.
B)If Dove is liquidated, Goldfinch will have a basis in the assets received equal to Dove's basis in the assets.
C)Goldfinch is treated as having bought all of Dove's assets on the qualified stock purchase date.
D)Dove can recognize gain or loss as a result of the § 338 election.
E)None of the above.

Question

Quizplus · Accepted Answer

The Answer of During the current year, Goldfinch Corporation purchased 100% of the stock of Dove Corporation and made a qualified election under § 338.Which of the following statements is incorrect with respect to the § 338 election?
A)Dove is treated as a new corporation as of the day following the qualified stock purchase date.
B)If Dove is liquidated, Goldfinch will have a basis in the assets received equal to Dove's basis in the assets.
C)Goldfinch is treated as having bought all of Dove's assets on the qualified stock purchase date.
D)Dove can recognize gain or loss as a result of the § 338 election.
E)None of the above.

During the Current Year, Goldfinch Corporation Purchased 100% of the Stock