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Which of the following statements regarding section 338 is false? a. Parent corporation will have a basis in the subsidiarys assets equal to its basis

Which of the following statements regarding section 338 is false?

a. Parent corporation will have a basis in the subsidiarys assets equal to its basis in subsidiarys stock.

b. The subsidiary need not be liquidated.

c. Loss is not recognized by subsidiary.

d. Election must be made by the fifteenth day of ninth month following a qualified stock purchase.

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