Question 6

0 / 1 point

If a Section 338 election is made pursuant to the liquidation of a subsidiary, which of the following statements are correct? Pick all that apply!!

The parent takes a new cost/value basis in the assets received from the subsidiary.

The parent takes a carryover basis (same basis as the subsidiary's basis) in the assets received from the subsidiary.

The subsidiary's tax attributes (for example, loss carryovers, credit carryovers, E&P balances) carry over to the parent upon liquidation of the subsidiary.

~ The subsidiary, if it continues to exist, is treated as a new corporation and most, if not all, of its existing tax attributes disappear.

The parent treats its purchase of the subsidiary's stock as if it were a purchase of the subsidiary's assets.