Corporation P acquired the stock of Corporation T for $40 Million from T shareholders. No Section...

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Accounting

Corporation P acquired the stock of Corporation T for $40Million from T shareholders. No Section 338 election was made.Corporation T has assets with a fair market value of $25 Millionand an adjusted basis of $22 Million. Corporation T also has a netoperating loss carryover of $10 Million. The federal long term taxexempt rate at the date of acquisition is 4%.
A) What is P’s basis in T’s assets and what is the annuallimitation on the use of T’s net
operating loss?
B) Briefly explain the rules for corporate net operating lossesarising after 2017.

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A Price paid 40 million Assets acquired 25 million Tax losses 10 million also has adjusted basis of 22 million P is paying 40 million for getting assets of worth 3 million 2522 and a opportunity to lower down his taxable income in See Answer

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