Eta Corporation purchases 20% of Beta Corporation stock from Marty on August 10 of the current...

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Eta Corporation purchases 20% of Beta Corporation stock from Marty on August 10 of the current year. Eta purchases an additional 30% of the stock from Nathan on November 15 of the current year. Eta purchases the remaining 50% of the Beta stock from Pablo on April 10 of the following year. The total price paid for the stock is $2.7 million. Beta's balance sheet on April 10 of the following year shows assets with a $3.5 million EMV, a $1.4 million adjusted basis, and $400,000 in liabilities. Read the reguirements. Requirement a. What is the acquisition date for the Beta stock for Sec. 338 purposes? By what date must Eta make the Sec. 338 election? The acquisition date is April 10 of the following year. The Sec. 338 election must be made by January 15 following the acquisition date. Requirement b. If Eta makes a Sec. 338 election, what is the aggregate deemed sale price for the assets? First, select the formula, then compute the aggregate deemed sale price for the assets. (Abbreviations used. Round your answer to the nearest whole dollar.) G+L-(TRXB) ADSP (1- TR) ADSP Requirement c. What is the total basis of the assets following the deemed sale, assuming a 21% corporate tax rate? The total basis is Requirement d. How does the tax liability attributable to the deemed sale affect the price Eta might be willing to pay for the Beta stock? Eta Corporation purchases 20% of Beta Corporation stock from Marty on August 10 of the current year. Eta purchases an additional 30% of the stock from Nathan on November 15 of the current year. Eta purchases the remaining 50% of the Beta stock from Pablo on April 10 of the following year. The total price paid for the stock is $2.7 million. Beta's balance sheet on April 10 of the following year shows assets with a $3.5 million EMV, a $1.4 million adjusted basis, and $400,000 in liabilities. Read the reguirements. Requirement a. What is the acquisition date for the Beta stock for Sec. 338 purposes? By what date must Eta make the Sec. 338 election? The acquisition date is April 10 of the following year. The Sec. 338 election must be made by January 15 following the acquisition date. Requirement b. If Eta makes a Sec. 338 election, what is the aggregate deemed sale price for the assets? First, select the formula, then compute the aggregate deemed sale price for the assets. (Abbreviations used. Round your answer to the nearest whole dollar.) G+L-(TRXB) ADSP (1- TR) ADSP Requirement c. What is the total basis of the assets following the deemed sale, assuming a 21% corporate tax rate? The total basis is Requirement d. How does the tax liability attributable to the deemed sale affect the price Eta might be willing to pay for the Beta stock?

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