(Answered) Corporation p acquired the stock of corporation t for 30

Accounting

Corporation P acquired the stock of Corporation T for $30 Million from T shareholders. No Section 38 election was made. Corporation T has assets with a fair market value of $28 Million and an adjusted basis of $21 Million. Corporation T also has a net operating loss carryover of $18 Million. The federal long term tax exempt rate at the date of acquisition is 5%.

What is P's basis in T's assets and what is the annual limitation on the use of T's net operating loss?

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