Gator Corporation is considering the acquisition of Bulldog Corporation’s stock in exchange for cash. Two options are under review: (1) Gator purchases the assets from Bulldog for $1.4 million or (2) Gator purchases the Bulldog stock for $1 million and makes a Sec. 338 election shortly after the stock purchase. Bulldog has no NOL or capital loss carryovers. Bulldog’s balance sheet is presented below. a. What advantages would accrue to Gator if it purchases the assets directly? What disadvantages would accrue to Bulldog if it sells the assets and then liquidates? b. What advantages would accrue to Gator if it purchases the Bulldog stock for cash and subsequently makes a Sec. 338 election? What advantage would accrue to Bulldog if its shareholders sell the Bulldog stock? c. How would your answers change if Bulldog had incurred $250,000 of NOLs in the current year that it cannot carry back in full due to insufficient taxable income in the preceding two years?