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:

Chroma Technology

refers to the application and manipulation of color in technology and digital imaging to achieve various effects or to solve specific problems.

CEO

Chief Executive Officer, the highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.

Readiness Level

The degree to which an individual, group, or organization is prepared and able to undertake a specific task or to respond to a situation.

Leadership Style

The characteristic approach and methods used by a leader to guide, motivate, and manage their team.