On April $23,2024,$ Auk Corporation acquires $100\%$ of the outstanding stock of Amazon Corporation $($E & P of $$750,000)$ for $$1,200,000.$ Amazon Corporation has assets with a fair market value of $$1,400,000($basis of $$800,000),$ no liabilities, and no loss or tax credit carryovers. Auk Corporation files a timely $338$ election. Assume that both the aggregate deemed sale price $($ADSP$)$ and adjusted grossedup basis $($AGUB$)$ are $$1,306,329.$

If an amount is zero, enter $"$O$".$ If required, round your answers to the nearest dollar.

a$.$ What are the tax consequences of the $338$ election to Amazon Corporation and to Auk Corporation?

Amazon Corporation is deemed to have sold its assets which results in a realized $$ of $$ of which $ $$ is recognized. Amazon is treated as $$ corporation with E & P $ $-$ Amazon Corporation now has a basis of $ $$ in the assets, and its holding period in the assets begins on April $24,2024$

Auk Corporation has a recognized gain of $ $$ And its basis in the Amazon Corporation stock is $ $$

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A corporation $($the "parent"$)$ may elect the provisions of $338$ if it acquires stock representing at least $80$ percent of the voting power and at least $80$ percent of the value of another corporation $($the "subsidiary"$)$ within a $12-$month period $("$qualified stock purchase"$).$

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?

Amazon Corporation recognizes $$

$x$ on the liquidating distribution of assets to Auk Corporation. $$ of $ $q,$ of $ $$ X on the liquidating distribution of assets to Auk

Auk Corporation recognizes no gain or loss $$ of $ $$ on the receipt of the assets in liquidation of Amazon