1) A selling company is a regular C corporation.

Given the following data calculate the net proceeds to the shareholders of the selling firm if the buyer makes a stock acquisition versus an acquisition of assets.

Purchase price, stock$250

Purchase price, assets250

Liabilities of seller100

Basis in assets (seller)150

Basis in shares (shareholders of seller)125

Marginal corporate tax rate (federal and state)35%

Individual capital gains tax rate (federal and state)24%