1. If a corporation wishes to divest a subsidiary in a tax-free manner and wants its historical shareholders to maintain a direct ownership in the divested subsidiary, what technique should it employ?...

1. If a corporation wishes to divest a subsidiary in a tax-free manner and wants its historical shareholders to maintain a direct ownership in the divested subsidiary, what technique should it employ?

2. If a corporation wishes to divest a subsidiary and needs cash, what possible alternative methods can it consider?

 3. In general, when should a Section 338(h)(10) election be made in a subsidiary sale? Consider the relationship between purchase price, subsidiary stock basis, and subsidiary net asset basis.