Question: Whitney Corporation acquires Jessamine Corporation Prior to the merger Jessamine

Whitney Corporation acquires Jessamine Corporation. Prior to the merger, Jessamine accumulated a $12,000,000 NOL. After the reorganization, Whitney generates $30,000,000 of taxable income. Whitney has a tax rate of 34%; the ยง 382 limitation does not apply.
How much does Whitney Corporation save in Federal income taxes by being able to utilize Jessamine's NOL carryover?

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  • CreatedSeptember 09, 2015
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