Rose Inc. is and accrual-basis, calendar-year corporation with only voting common stock outstanding. On October 19, 2019, it acquired the assets of Nagg Inc. by issuing 3,000 of its voting common shares in a Type A reorganization. Nagg has a $300,000 net operating loss carryover and the value of its stock is $2 million. Roses taxable income for the year of acquisition is $280,000. Assume the long-term tax-exmpt rate is 3 percent.

1. What is Roses net operating loss deduction for the year of acquisition assuming that the Sec. 382 limitaion does not apply? For the following year?
2. What is Roses net operating loss deduction for the year of acquisition if the Sec. 382 limitation does apply to the acquisition? For the following year?