Green Leaf Corporation acquired the stock of Apple Corporation and made a valid Section 338 election in conjunction with the stock seller to treat the stock purchase as an asset purchase. Prepare a letter to Green Leaf Corporation in which you answer the following:

1. How this choice is permissible under Section 338, including the specific subsection applicable to this scenario;
2. How the deemed asset sale should be reported on the target company's consolidated income tax return; and
3. Why Green Leaf Corporation would choose to treat the acquisition this way what benefit do they stand to gain?