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:

Physical Destruction

The act of causing significant damage or ruin to material objects or structures, often through force or violence.

Personal Injuries

Physical or emotional harm to an individual that may result from accidents, negligence, or intentional acts.

Natural Disaster

refers to the sudden and extreme events caused by environmental factors that result in significant damage and hardship to affected communities and regions.

Reassured

Reassured means having one's confidence restored; to be comforted or relieved from worries or doubts.