Corporation P acquired the stock of Corporation T for $40Million from T shareholders. No Section 338 election was made.Corporation T has assets with a fair market value of $25 Millionand an adjusted basis of $22 Million. Corporation T also has a netoperating loss carryover of $10 Million. The federal long term taxexempt rate at the date of acquisition is 4%.
A) What is P’s basis in T’s assets and what is the annuallimitation on the use of T’s net
operating loss?
B) Briefly explain the rules for corporate net operating lossesarising after 2017.
