What are the tax consequences to egret and to aqua

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On August 9, 2010, Egret Corporation acquired 100% of the outstanding stock of Aqua Corporation for $1 million and made a qualified section 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 section 338 election and the liquidation of Aqua?

Reference no: EM13160123

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What are the tax consequences to egret and to aqua : that Aqua Corporation is immediately liquidated. In general, what are the tax consequences to Egret and to Aqua of the section 338 election and the liquidation of Aqua?
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