Which of the Following Statements Is Correct with Respect to the §

Multiple Choice

Which of the following statements is correct with respect to the § 338 election?

A) The parent corporation makes the § 338 election.
B) A qualified stock purchase occurs when a corporation acquires, in a taxable transaction, at least 80% of the stock (voting power and value) of another corporation within a 18-month period.
C) The subsidiary corporation must be liquidated pursuant to the § 338 election.
D) Gain, but not loss, is recognized by the subsidiary as a result of a deemed sale of its assets.
E) None of the above.