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Can you please explain the answer. 23. Florida Corp . acquired 100 percent of Georgia Corp . 's outstanding stock onDecember 31 , 2015 in
Can you please explain the answer.
23. Florida Corp . acquired 100 percent of Georgia Corp . 's outstanding stock onDecember 31 , 2015 in exchange for $5, 000, 000 worth of Florida's voting stock ( thisrepresented 10Y's of Florida's outstanding stock ; . At the time of the acquisition ( whichqualified as a Type B reorganization ) , Georgia Corp . had a Good, 000 NOL carryforward . For 2016 , the two corporations filed separate tax returns and Georgia Corp .reported taxable income of $700, 000 (before NOL deductions . Assuming the long -term tax- Exempt rate for the period including the acquisition date was 390 , what wasGeorgia Corp .'s taxable income for 2016?a .$ 100, 000b .$ 200, 000[ .$550, 000d .$ 700, 000Step by Step Solution
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