How much of the sunco capital loss carryover may yellow

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Reference no: EM132128682

Through a "Type A" reorganization, Yellow Corporation acquired 100% of SunCo stock by September 25 of the current tax year ending December 31. At the time the 100% was acquired, SunCo was worth $900,000, and the Federal long-term tax-exempt rate was 4%. SunCo holds capital loss carryovers of $25,000. Assume that the § 382 limitation for the current year is $100,000. Yellow reports taxable income of $200,000 which includes $30,000 capital gains. At the time it was acquired, SunCo had taxable income of $32,000 which included $4,000 capital gains. If an amount is zero, enter "0". Enter the correct amount for each the following:

1. How much of the SunCo capital loss carryover may Yellow use in the current year to offset its income? $

2. How much of SunCo capital loss carryover may SunCo use in the current year to offset its income? $

Reference no: EM132128682

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