What percentage of stock should exchanged for kers assets

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Question - Taipa Corporation is interested in acquiring Kers Corporation through a "Type C" reorganization on January 2 of the current year. Taipa's stock is valued at $10 million and generates $1 million of taxable income yearly. Kers holds plant and equipment valued at $780,000 and liabilities of $230,000. It also reports a $346,500 NOL with 10 years remaining of the carryover period. If Taipa uses a 12% discount rate for its business investment decisions and the Federal long-term tax-exempt rate is 9%, what percentage of its stock should be exchanged for Kers's assets?

Reference no: EM131827453

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