Problem 8.2-Limitation on the Use of Tax Attributes On January 1, 20x1, John sold his stock in Johnston Corporation to Jones Corporation for $100,000. At the time of the sale, the corporation had no assets other than a net operating loss of $1,000,000, which was incurred in 20x0 (the year prior to the sale). The applicable federal rate is 2.5%. a) How much of the acquired net operating loss acquired may Jones Corporation use to offset against its other earnings in 20x1 (assuming the continuity of business requirement is met, and Jones Corporation has sufficient earnings to fully utilize any net operating losses available to them)? b) When will the acquired net operating loss expire? c) How long will it take Jones corporation to utilize all of the acquired net operating loss? Problem 8.2-Limitation on the Use of Tax Attributes On January 1, 20x1, John sold his stock in Johnston Corporation to Jones Corporation for $100,000. At the time of the sale, the corporation had no assets other than a net operating loss of $1,000,000, which was incurred in 20x0 (the year prior to the sale). The applicable federal rate is 2.5%. a) How much of the acquired net operating loss acquired may Jones Corporation use to offset against its other earnings in 20x1 (assuming the continuity of business requirement is met, and Jones Corporation has sufficient earnings to fully utilize any net operating losses available to them)? b) When will the acquired net operating loss expire? c) How long will it take Jones corporation to utilize all of the acquired net operating loss