$4.$ In class, we discussed the stock purchase of Acme, whereby the stock sales price was assumed to be $$100$ million:

Tax Effects of Stock Purchase

Total Price for Stock $$100,000,000$

Shareholders' Tax Basis $$20,000,000$

Capital Gain $$80,000,000$

Capital Gain Tax @ $15\%$ $$12,000,000$

Net to Shareholders $$88,000,000$

Assume now that in the negotiations, the Acme has been successful in negotiating price up to $$200$ million. Please recalculate the net payment to the shareholders of Acme in the stock sale, assuming all other tax attributes as noted in class remain