Parent and Subsidiary Corporations Form an Affiliated Group How Much of the Subsidiary Loss Can Be Carried Back

question 65

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. $$\begin{array} { | l | r | c | } \hline { \text { Taxable Incame } } \\\hline & { \text { Last } } & \text { Current } \\\hline \text { Parent } & ( \$ 16,000 ) & \$ 20,000 \\\hline \text { Subsidiary } & 10,000 & ( 21,000 ) \\\hline\end{array}$$ 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

---

Definitions:

Environmental Factors

Elements of the environment that can influence living organisms, including natural features, human activities, and social conditions.

Synapses

The junctions through which neurons communicate with each other, using chemical or electrical signals.

Human Beings

Members of the species Homo sapiens, characterized by their ability to adapt, think, and create complex cultures.

Synaptic Density

The concentration of synapses in a given area of the brain, impacting neural connectivity and brain function.