Present Value Tables Needed for This Question

question 54

Multiple Choice

Present value tables needed for this question. Hard Corporation has net assets valued at $900,000 and an NOL of $450,000.On January 3 of the current year,Hard is acquired by Soft Corporation in a restructuring qualifying as a tax-free reorganization that causes an ownership shift of 80 percentage points for the Hard shareholders.Soft uses a calendar year for tax purposes.Assuming that the long-term tax-exempt rate is 5%,what is the maximum amount Soft should be willing to pay Hard for its NOL,if Soft uses a 10% discount factor for this decision?

• A)$450,000.
• B)$276,525.
• C)$138,263.
• D)$191,565.
• E)None of the above.