A selling company is a regular C corporation. Given the following data calculate the net proceeds to the shareholders of the selling firm if the buyer makes a stock acquisition versus an acquisition of assets.
Purchase price, stock $250
Purchase price, assets 250
Liabilities of seller 100
Basis in assets (seller) 150
Basis in shares (shareholders of seller) 125
Marginal corporate tax rate (federal and state) 35%
Individual capital gains tax rate (federal and state) 24%
