Flower Corporation has two divisions that it has operated for the last 10 years: Gerbera with a value of $806,000 (basis $400,000) and Daisy with a value of $744,000 (basis 800,000). While Gerbera is profitable, Daisy continues to incur losses and created a $350,000 NOL for Flower two years ago. The flower has decided this year it would like to become two corporations: Gerbera and Daisy. Which of the following is the best method for Flower to become two corporations?

Answer rating: 100% (QA)

Two varieties of capital injected into a business 1Debt Capital is additionally observed as debt financing Funding by means of debt capital happens when a corporation borrows money and agrees to pay i... View the full answer