Given the following details, what is the difference in seller net proceeds between the asset sale and the stock sale?
Details:
Corporate tax rate: 38%
Capital gains rate: 20%
Stock Sale:
Purchase price: $4,000.0m
Stock basis: $1,000.0m
Asset Sale:
Purchase price: $4,000.0m
Asset basis: $1,000.0m
A) $1,520.0m
B) $912.0m
C) $372.0m
D) $518.0m
Correct Answer:
Verified
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