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Tax Drill - Section 3 3 8 Election Indicate whether the following statements apply to the General rule of nonrecognition or the Section 3 3
Tax Drill Section Election
Indicate whether the following statements apply to the "General rule" of nonrecognition or the "Section election".
a The liquidation of a subsidiary is taxfree to both the subsidiary except for any minority interest and the parent corporation.
b The subsidiary recognizes gain or loss on the deemed disposition of its assets. A liquidation of the subsidiary remains taxfree to the parent.
c When the subsidiary is liquidated, the subsidiary's historical holding period in its assets carries over to the parent.
d Assumes a sale and repurchase of the subsidiary's assets; and, as a result of these deemed transactions, the holding period starts anew.
e The parent corporation can make an election if it acquires stock representing at least percent of the voting power and at least percent of the value of another corporation the "subsidiary" within a month period.
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