Parent and Subsidiary Corporations Form an Affiliated Group

question 18

Multiple Choice

Parent and Subsidiary Corporations form an affiliated group. Last year, the initial year of operation, Parent and Subsidiary filed separate returns. This year. the group files a consolidated return. How much of the Subsidiary loss can be carried back to last year?

• A) $0
• B) $1,000
• C) $10,000
• D) none of the above

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Definitions:

Insensitivity To Change

The failure to notice changes in one's environment or within a specific context, often because of gradual or subtle changes.

Evaluative Conditioning

A stimulus will become more liked or less liked when it is consistently paired with stimuli that are either positive or negative.

Spreading Attitude Effect

A liked or disliked person (or attitude object) may affect not only the evaluation of a second person directly associated but also others merely associated with the second person.

Automatic Activation

According to Fazio, attitudes that have a strong evaluative link to situational cues are more likely to automatically come to mind from memory.