Sinopia completed a corporate restructuring transaction with Cyan on May 31 of the current year. Cyan distributed 30% of Sinopia's stock to its shareholders in exchange for all of their stock in Cyan. At the completion of the reorganization, Cyan's assets were worth $900,000, its liabilities were $350,000, and it held an NOL carryover of $207,674. The applicable Federal long-term tax-exempt rate is 3%, and Sinopia is in the 25% Federal income tax bracket. Sinopia earns a 6% after-tax rate of return.

If required, round to the nearest dollar. Assume a 365-day year.

a. What is the amount of NOL that Sinopia may use in the current year? $_______

b. Compute the yearly tax benefit of the NOL $ ______ What is the net present value of the NOL carried forward to future years? $______-