Royal Service, a large company, has offered $100 million to purchase General Manufacturing company. Royal Service is

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Royal Service, a large company, has offered $100 million to purchase General Manufacturing company. Royal Service is open to numerous ways to structure the deal: a stock or an asset purchase, and they are willing to give cash or their own stock. For General Manufacturing, each of the two shareholders have a stock basis of $40 million; the adjusted basis of assets is $80 million; and there is a $50 million NOL carry-forward. Discuss the Federal tax and SALT tax consequences under all scenarios. Assume the stock of General Manufacturing is owned by 50% by an individual and 50% by a C corporation. Write an IOM providing detail numbers to Royal with your recommendations

Posted Date: Dec 18, 2021 12:52 AM

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Royal Service, a large company, has offered $100 million to purchase General Manufacturing company. Royal Service is

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Proposed Balance sheet after purchase by Royal Service exclusive of taxes Amt In Milllion Amt In ... View the full answer

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