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The Albatross Co. has accumulated net operating losses of $70 million and is likely to enter bankruptcy. The Zephyr Co. has earnings of $200 million

The Albatross Co. has accumulated net operating losses of $70 million and is likely to enter bankruptcy. The Zephyr Co. has earnings of $200 million and is in the 36% marginal tax bracket. Zephyr is considering buying Albatross and liquidating the company and retaining a few of the assets. What is the minimum value of Albatross to Zephyr?

A. $25.2 million.

B. $72.0 million.

C. $70.0 million.

D. Not enough information to calculate.

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