Miro Corporation exchanged 10% of its stock with Lobo shareholders for all of the Lobo stock outstanding. At the time of the acquisition by Miro, the fair market value of Lobo was $1.5 million, and the Federal long-term tax-exempt rate was 5%. In the current year, Miro has $600,000 of taxable income. Lobo has excess credits from prior years amounting to $40,000. What is Miro's Federal income tax for the year, if it is in the 34% tax bracket?

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The Answer of Miro Corporation exchanged 10% of its stock with Lobo shareholders for all of the Lobo stock outstanding. At the time of the acquisition by Miro, the fair market value of Lobo was $1.5 million, and the Federal long-term tax-exempt rate was 5%. In the current year, Miro has $600,000 of taxable income. Lobo has excess credits from prior years amounting to $40,000. What is Miro's Federal income tax for the year, if it is in the 34% tax bracket?

Miro Corporation Exchanged 10% of Its Stock with Lobo Shareholders