I need help answering the questions listed below

42 Cases in Tax Straeagy f MCI Analysis of the tax eonsequences of WorldCom's Acquisition o Merle Erickson Several firms tried to acquire MCI in 1997 before an agreement was WorldCom. Each of these entities was proposing a slightly diff the acquisition WorldCom ultimately acquired MCL, but for p you should use deal values as of October 1997 (Some of the offers inelantne case, components and therefore the deal values change with overall market You have all of the necessary documents related to the transaction, but you to collect some additional data for a few of the questions. e for purposes of case stock moy With respect to answering the numerical questions below, use approximations. You given credit for producing an answer that is "in the ballpark," in part because this deal spanned a broad time period making precise answers non-sensical in many cases. deductible. Assume that all Goodwill on MCI's balance sheet is not tax dedu Questions: British Telecom's Offer: British Telecom had an agreement to acquire MCI. What were the terms (approximatelv) of this agreement? (see transaction details below). What would the tax implications of this acquisition be for MCI's shareholders? 3. What type (tax type by code section) of merger is this, based on your best guess (see merger documents that are attached)? 4. What were the tax implications of this merger structure for British Telecom? What gross tax basis in MCI's assets (in dollars) would BT take (approximately)? Assume that all of MCI's deferred taxes relate to timing differences between book and tax depreciation (use the deferred tax data from the balance sheet, not the footnotes). Compute the basis as of June 30, 1997. (Use MCT's June 30, 1997 balance sheet and MCI's 12/31/97 income statement and footnotes as the basis for your computations.) What net tax basis in MCI's assets would BT take? What tax basis in MCI stock (in dollars) would BT take (approximately)? See Exce spreadsheet with MCI Price Data. 42 Cases in Tax Straeagy f MCI Analysis of the tax eonsequences of WorldCom's Acquisition o Merle Erickson Several firms tried to acquire MCI in 1997 before an agreement was WorldCom. Each of these entities was proposing a slightly diff the acquisition WorldCom ultimately acquired MCL, but for p you should use deal values as of October 1997 (Some of the offers inelantne case, components and therefore the deal values change with overall market You have all of the necessary documents related to the transaction, but you to collect some additional data for a few of the questions. e for purposes of case stock moy With respect to answering the numerical questions below, use approximations. You given credit for producing an answer that is "in the ballpark," in part because this deal spanned a broad time period making precise answers non-sensical in many cases. deductible. Assume that all Goodwill on MCI's balance sheet is not tax dedu Questions: British Telecom's Offer: British Telecom had an agreement to acquire MCI. What were the terms (approximatelv) of this agreement? (see transaction details below). What would the tax implications of this acquisition be for MCI's shareholders? 3. What type (tax type by code section) of merger is this, based on your best guess (see merger documents that are attached)? 4. What were the tax implications of this merger structure for British Telecom? What gross tax basis in MCI's assets (in dollars) would BT take (approximately)? Assume that all of MCI's deferred taxes relate to timing differences between book and tax depreciation (use the deferred tax data from the balance sheet, not the footnotes). Compute the basis as of June 30, 1997. (Use MCT's June 30, 1997 balance sheet and MCI's 12/31/97 income statement and footnotes as the basis for your computations.) What net tax basis in MCI's assets would BT take? What tax basis in MCI stock (in dollars) would BT take (approximately)? See Exce spreadsheet with MCI Price Data