Cardinal and Bluebird Corporations Both Use a Calendar Year as Their

question 55

Multiple Choice

Cardinal and Bluebird Corporations both use a calendar year as their tax year. At the close of business on June 30, Cardinal Corporation buys all of Bluebird Corporation's stock. If the two corporations file a consolidated return and both corporations earn their income evenly throughout the year, what portion of Bluebird's income will be included in the consolidated return? (Assume all months have 30 days.)

• A)100%
• B)50%
• C)0%
• D)none of the above

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Definitions:

Assigned Tasks

Assigned tasks are specific duties or responsibilities allocated to individuals or teams as part of their job or project roles.

Delegation

The assignment of responsibility or authority from one person to another for specific tasks or activities.

Assignment of Responsibilities

The process of distributing tasks and duties among members of a group or an organization.

Mechanistic Organization

A structured and hierarchical organizational model emphasizing clear lines of authority, job specialization, and rigid adherence to procedures.