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DNUD eBook Problem 7-45 (LO. 5) Zeta Corporation is interested in acquiring Tau Corporation through a Type A reorganization on January 2 of the current

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DNUD eBook Problem 7-45 (LO. 5) Zeta Corporation is interested in acquiring Tau Corporation through a "Type A" reorganization on January 2 of the current year. Zeta stock is valued at $50,000,000 and generates $5,000,000 of taxable income yearly. Tau is valued at $7,000,000 and holds a $1,470,000 NOL with nine years remaining of the carryover period. Zeta earns a 7% after-tax rate of return and the Federal long-term tax-exempt rate is 3%, Click here to access the present value tables. Use a combined marginal state and Federal income tax rate of 25%. If required, round your answers to the nearest dollar. a. Compute the Section 382 limitation, 210,000 b. Compute the yearly tax benefit of the NOL. 384,775 x c. The maximum amount Zeta Corporation should value Tou Corporation's NOLIS $

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