On December 31, 2016, 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 2017, 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 earns an 8% after-tax rate of return.
a. How much of the BetaCo carryovers may Alpha utilize in 2017?
b. Alpha expects to generate $600,000 of taxable operating income for 2018 and 2019. In 2020, 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 2017?