Mako and Snufco Corporations Are Affiliated and Have Filed Consolidated

question 50

Multiple Choice

Mako and Snufco Corporations are affiliated and have filed consolidated returns for the past three years. Mako acquired 100% of Zebco stock on January 1 of last year, the date of Zebco's formation. Mako, Snufco, and Zebco, who have filed consolidated returns for last year and the current year, report the following taxable incomes. $$\begin{array} { | c | c | c | } \hline \text { Corporation } & \begin{array} { c } \text { Taxable Income } \\\text { Last year }\end{array} & \begin{array} { c } \text { Taxable Income } \\\text { Current year }\end{array} \\\hline \text { Mako } & \$ 18,000 & \$ 12,000 \\\text { Snufco } & 9,000 & 8,000 \\\text { Zebco } & \underline { ( 25,000 ) } & \underline { ( 35,000 ) } \\\text { CTI } & \$ 2,000 & \underline { ( \$ 15,000 } ) \\\hline\end{array}$$ The $15,000 consolidated NOL reported in the current year

• A) cannot be carried back.
• B) can be carried back three years ago only.
• C) can be carried back to last year and the remainder, if any, carried forward to subsequent years.
• D) can only be used in future years.

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Definitions:

Marketing Mix

Refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market, typically encapsulated by the four Ps: Product, Price, Place, and Promotion.

Place Element

Aspects of marketing that focus on the distribution and availability of a product or service to the target consumer.

Promotion

A marketing strategy involving the publicizing and selling of a product or service, often including discounts, advertising, and special offers to stimulate demand.

Marketing Mix

A set of actions, or tactics, that a company uses to promote its brand or product in the market; traditionally defined as the 4Ps: Product, Price, Place, and Promotion.