### Question
How is the "purchasing corporation" defined?


### Answer
The term **purchasing corporation** is defined in *26 U.S.C. § 338* as follows -

> any corporation which makes a qualified stock purchase of stock of another corporation

#### 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**

