Weaver Corporation Has Net Assets Valued at $800,000 and an NOL

question 120

Multiple Choice

Weaver Corporation has net assets valued at $800,000 and an NOL of $250,000. On September 30 of the current year, Weaver is acquired by Loom Corporation, a calendar year taxpayer, in a restructuring qualifying as a tax-free reorganization. Weaver shareholders receive 30% of Loom's shares in exchange for all of their Weaver stock. Assuming that the Federal long-term tax-exempt rate is 8%, what is the maximum amount of Weaver's NOL available to Loom in the current year?

• A)$250,000
• B)$240,000
• C)$75,000
• D)$64,000
• E)None of the above

---

Definitions:

Viral RNA

Ribonucleic acid molecules encoded by viruses that carry genetic information for the replication and function of the virus within host cells.

Genetic Material

Molecules within cells that carry genetic information, primarily DNA or RNA, necessary for heredity and biological functions.

Thermus Aquaticus

A bacterium found in hot springs, known for its heat-tolerant enzyme used in PCR (Polymerase Chain Reaction) technology.

Pathogenic

Pertaining to an organism or substance that causes disease.