On august 9 2010 egret corporation acquired 100 of the, Ask an Expert

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On August 9, 2010, Egret Corporation acquired 100% of the outstanding stock of Aqua Coorporation for $1million and made a qualified §338 election. On that date, Aqua Corporation had assets with a basis of $700,000 and E&P of $400,000. Assume that the aggregate deemed sale price and the adjusted grossed-up basis each equal $1.2 million and that Aqua Corporation is immediately liquidated. In general, what are the tax consequences to Egret and to Aqua of the §338 election and the liquidation of Aqua?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9975565

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