(Solution) - P Corporation acquires all of S Corporation s stock at the -(2025 Original AI-Free Solution)

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P Corporation acquires all of S Corporation?s stock at the beginning of the current year in a transaction that qualifies as a Sec. 382 ownership change. P and S elect to file a consolidated tax return for the current year. At the time of the acquisition, S has $900,000 of NOLs it has not deducted. Management estimates that, because of the Sec. 382 limitation, the group will be able to use only $300,000 of the NOLs before they expire. The group?s tax rate is 35%. Determine the amount of deferred tax asset and valuation allowance the group records for S?s NOL.