1. On July 1^st, 2021, Parent acquired Subco in a non-taxable acquisition under Type A for $200 million. Subco has unused NOL carry forward of $20 million. Assume long term AFR rate of 5%. How much of these losses can be deducted in year ended 12/31/2021 by the Parent under Section 382? Ignore present value discount factors and SRLY limitations.

2. Noncorporate shareholders generally prefers to have a stock redemption treated as a sale or exchange rather than a dividend distribution, whereas a corporate shareholders would prefer a redemption treated as a dividend. Do you agree with this statement? Please explain in detail.