Target Corporation has net assets with a FMV of $750,000 and an NOL of $600,000. Target transfers all of its assets and liabilities to Acquirer Corporation in exchange for 25% of Acquirer's common stock. The restructuring, qualifying as a reorganization, occurs on October 2 (90 days to December 31) of the current year. Acquirer uses a calendar year for tax purposes and has $60,000 of taxable income for the year. Assuming that the long- term tax-exempt rate is 4%, what is the maximum amount of Target's NOL available to Acquirer in the current year? You must show all calculations to get credit. 9.

Other Reorganization Questions 9. Target Corporation has net assets with a FMV of $750,000 and an NOL of $600,000. Target transfers all of its assets and liabilities to Acquirer Corporation in exchange for 25% of Acquirer's common stock. The restructuring, qualifying as a reorganization, occurs on October 2 ( 90 days to December 31 ) of the current year. Acquirer uses a calendar year for tax purposes and has $60,000 of taxable income for the year. Assuming that the longterm tax-exempt rate is 4%, what is the maximum amount of Target's NOL available to Acquirer in the current year? You must show all calculations to get credit