What amount of the net operating loss may maple corp use

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Maples Corp., whose outstanding stock is worth $4 million, has a net operating loss carryforward of $1 million. Maples is owned 45 percent by Alan and 55 percent by Cline, who are otherwise unrelated. Because of their managerial differences, it has been decided that Maples will redeem all of Cline's stock in exchange for $2.2 million of cash on December 31, 2011. Assuming the long-term tax-exempt rate is 3 percent, what amount of the net operating loss may Maples Corp. use to offset its taxable income for calendar-year 2012?

Reference no: EM13126482

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