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Which One of the Following Statements Regarding Computation of the Limitation

Question 56

Multiple Choice

Which one of the following statements regarding computation of the limitation of NOL carryover described in § 382, relating to the acquisition of "loss corporations," is true?


A) The value of the loss corporation is considered to be the amount paid by the purchaser.
B) It is assumed that the equity of the loss corporation immediately before change in ownership is invested in tax-exempt securities that pay interest at a rate prescribed by statute.
C) The amount of NOL carryover that can be used is a product of the FMV of the corporation's stock before the change and the "long-term tax-exempt rate."
D) All are true.

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