Question: Through a Type A reorganization VizslaCo acquires 100 of Puli
Through a "Type A" reorganization, VizslaCo acquires 100% of Puli Corporation by exchanging 30% of its stock for all of Puli's assets and liabilities. The VizslaCo stock was exchanged for all of the stock of the Puli shareholders. Then Puli liquidated. The net value of Puli's assets at the time of the restructuring was $500,000, and the Federal long-term tax-exempt rate was 5%. Puli held business tax credit carryovers of $61,250. If VizslaCo is always in the 35% tax bracket, what is the value of these credits to VizslaCo assuming that it uses a discount rate of 8%?
Relevant QuestionsShepherd Corporation is considering acquiring RentCo by exchanging its stock (value of $10 per share) for RentCo's only asset, a tract of land (adjusted basis of $150,000 and no liability). The yearly net rent that RentCo ...Amaranth Corporation would like to acquire the rights to a chemical proc ess owned by Bistre Corporation. Bistre cannot sell the process because the rights are not transferrable under the terms of the controlling contract. ...Provide the information required to complete the following chart. In working as the tax consultant for LargeCo, Megan discovers that for the first time, the corporation is eligible to form a consolidated group for filing its Federal corporate income tax returns. List two or more of the ...Parent Corporation's current-year taxable income included $100,000 net income from operations and a $10,000 net long-term capital gain. Parent also made a $5,000 charitable contribution. SubCo generated $45,000 income from ...
Post your question