policy cash values of such policies and contracts, and (II) in the case of assets of the acquired entity not described in subclause (I), the adjusted bases (within the meaning of section 1016) of such assets. . (b) Conforming amendment Paragraph (1) of section 101(a) of the Internal Revenue Code of 1986 is amended by striking paragraph (2) and inserting paragraphs (2) and (3) . (c) Effective date The amendments made by this section shall apply to transfers after December 31, 2017.