At the close of business on May 31, 2020, Alaska Corporation exchanges $2 million of its voting common stock for all the noncash assets of Tennessee Corporation. Tennessee uses its cash to pay off its liabilities and then liquidates. Tennessee and Alaska report the following taxable income (loss):

a. What tax returns must Alaska and Tennessee file for 2020?

b. What amount of the NOL carryover does Alaska acquire?

c. Ignoring Sec. 382 limitations, what amount of Tennessee’s NOL can Alaska use in 2020? What is Alaska’s NOL carryover to 2021?

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Tax Year Ending Alaska Corp. Tennessee Corp. December 31, 2017 December 31, 2018 December 31, 2019 May 31, 2020 December 31, 2020 ($100,000) 60,000 70,000 XXX ($95,000) 20,000 (90,000) (40,000) XXX 73,000