Parent Corporation owns 70% of Subsidiary Corporation’s stock. The FMV of Subsidiary’s assets is significantly greater than their basis to Subsidiary. The FMV of Parent’s interest in the assets also substantially exceeds Parent’s basis for the Subsidiary stock. Also, Parent’s basis in its Subsidiary stock exceeds Subsidiary’s basis in its assets. On January 30, Parent acquired an additional 15% of Subsidiary stock from one of Subsidiary’s shareholders who owns none of the Parent stock. Subsidiary adopts a plan of liquidation on March 12. The liquidation is completed before year-end. What advantages accrue to Parent with respect to the liquidation by acquiring the additional Subsidiary stock?

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