R Corporation is merged into B Corporation in an "A" reorganization on June 30, 2012.R has a $250,000 NOL carryover.B has taxable income (before the NOL deduction) of $800,000 for the year ending December 31, 2012.How much of R's NOL can B deduct on the 2012 tax return? (Assume §382 does not apply.)

Question

Quizplus · Accepted Answer

In an "A" reorganization, the acquiring corporation (B) can use the NOL carryover of the target corporation (R) as if it were its own. Therefore, B can deduct the full $250,000 NOL carryover on the 2012 tax return.

R Corporation Is Merged into B Corporation in an "A