Identify which of the following statements is false.
A. In a Sec. 338 deemed sale election, the shareholders of the target corporation sell their stock to the acquiring corporation.
B. A Sec. 338 election usually triggers taxation to the target corporation.
C. A Sec. 338 election must be made not later than the fifteenth day of the ninth month following the first stock acquisition in a series of acquisitions that leads to 80% or more stock ownership.
D. When a Sec. 338 election is made, the target corporation is treated as having sold all of its assets at their FMV at the close of the acquisition date.
Answer: C
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