Brown Corporation purchased 85% of the stock of Green Corporation five years ago for $850,000. In the current year, Brown Corporation liquidates Green Corporation and acquires assets with a basis to Green Corporation of $700,000 (fair market value of $1.1 million). Brown Corporation will have a basis in the assets of $850,000, the same as Brown's basis in its Green stock.
Answer the following statement true (T) or false (F)
False
Rationale: Brown has a basis of $700,000 in the assets, the same as Green's basis in the assets.
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