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Holt Corporation acquires all the stock of Star Corporation and makes a timely sec 338 election. the adjusted grossed-up basis of the star stock is
Holt Corporation acquires all the stock of Star Corporation and makes a timely sec 338 election. the adjusted grossed-up basis of the star stock is $2.5 million. the FMV of tangible assets on Star's balance sheet is $1.8 million. How are the new bases in Star's individual assets determined?
How would your answer change if instead the adjusted grossed-up basis were $1.4 million?
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