Question: On April 29, 2016, Auk Corporation acquires 100% of the outstanding stock of Amazon Corporation (E & P of $750,000) for $1.2 million. Amazon Corporation
a. What are the tax consequences of the § 338 election to Amazon Corporation and to Auk Corporation?
b. Assume that Amazon Corporation is liquidated immediately following the § 338 election. What are the tax consequences of the liquidation to Amazon Corporation and to Auk Corporation?
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