LO.5 On December 31, 2011, Alpha Corporation, valued at $10 million, acquired BetaCo when BetaCo was valued at $5 million. BetaCo holds a capital loss carryforward of $220,000 and excess business credits of $435,000. At the end of 2012, Alpha reports taxable income before any carryovers of $750,000, consisting of $150,000 capital gains and $600,000 operating income. The applicable Federal long-term rate is 4%, and Alpha uses an 8% discount rate for its business decisions.

a. How much of the BetaCo carryovers may Alpha utilize in 2012?

b. Alpha expects to generate $600,000 of taxable operating income for 2013 and 2014.

In 2015, it expects to record $700,000 taxable income, including $100,000 of capital gains. What is the value of the capital loss carryforward and excess business credits to Alpha after 2012?