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

On April 29, 2016, Auk acquires 100% of the outstanding stock of Amazon (E & P of $750,000) for $1.2 million. Amazon has assets with a fair market value of $1.4 million (basis of $800,000), no liabilities, and no loss or tax credit carryovers. Amazon Corporation's tax rate is 34%. Auk files a timely § 338 election. Assume that both the aggregate deemed sale price (ADSP) and adjusted grossed-up basis (AGUB) are $1.4 million.
a. What are the tax consequences of the § 338 election to Amazon and to Auk Assume that Amazon is liquidated immediately following the § 338 election. What are the tax consequences of the to Amazon and to Auk

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