### Question
How does Income Taxes define target corporation?


### Answer
Under *26 U.S.C. § 338*, **target corporation** is defined as:

> any corporation the stock of which is acquired by another corporation in a qualified stock purchase

#### Citation:
  - *26 U.S.C. § 338*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART II-CORPORATE LIQUIDATIONS > Subpart B-Effects on Corporation**

