Acquiring Corporation Is 100%-Owned by Peter Hart

question 70

Multiple Choice

Acquiring Corporation is 100%-owned by Peter Hart. Target Corporation is 100% owned by Dick Weber. The two individuals are not related. Target Corporation has $400,000 of NOL carryovers at the time Acquiring Corporation is considering making a cash acquisition of part or all of Target Corporation's stock. What is the maximum amount of Target stock that can be acquired in a single transaction without the Sec. 382 loss limitation rules applying to the NOLs?

• A)49%
• B)50%
• C)80%
• D)Any acquisition of Target stock will cause the Sec. 382 loss limitation to apply.

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Definitions:

Newly Collected

Recently gathered information or data that has not been previously recorded or analyzed.

Primary And Secondary

A classification in research and data collection distinguishing between directly obtained information (primary) and previously collected or indirectly obtained information (secondary).

Data Types

Refers to the classification of data based on its nature and the type of information it represents, such as numerical, textual, or binary.

Primary Data

Data collected directly for the first time for a specific research purpose or project.