I:4-52 Discharge of Debt. Old Corporation has suffered losses for several years, and its debts total $500,000;
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I:4-52 Discharge of Debt. Old Corporation has suffered losses for several years, and its debts total $500,000; Old’s assets are valued at only $380,000. Old’s creditors agree to reduce Old’s debts by one-half in order to permit the corporation to continue to operate. Old’s NOL carryover is $150,000.
a. What impact does the reduction in debt have on Old’s NOL?
b. Is Old required to report any income?
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Related Book For 
Pearsons Federal Taxation Corporations Partnerships Estates And Trust 2023
ISBN: 9780137730391
36th Edition
Authors: KENNETH E. ANDERSON, DAVID S. HULSE, TIMOTHY J. RUPERT Richard J. Joseph LeAnn Luna
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