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?
