Present Value Tables Needed for This Question

Present Value Tables needed for this question. Hair Corporation would like to acquire Scalp Corporation on August 31 because Scalp has an $8,000 capital loss carryover and $32,200 of general business credits that Hair could readily use. At this time, Scalp has assets valued at $1 million (basis of $1.1 million). While Hair is not interested in having Scalp's shareholders become its shareholders, it is interested in expanding into Scalp's business line. Hair thinks it could turn Scalp around with up-to-date equipment. Thus, Hair would like to sell Scalp's assets immediately, recognize the loss to offset its expected gains, and then use the proceeds to purchase new equipment. Hair is a very profitable corporation and is also expecting to have at least $50,000 of capital gains and $3 million in other income for the current year. Hair is proposing paying cash for all of Scalp's assets and liabilities. The Federal long-term tax-exempt rate is currently 3%, and Hair's discount factor for making investment decisions is 15%.