Last Year, Trix Corporation Acquired 100% of Track Corporation Which of the Following Statements Is Incorrect?
A) Last Year

question 96

Multiple Choice

Last year, Trix Corporation acquired 100% of Track Corporation. The acquisition occurred on July 1, which was five months after Track's creation. The corporations filed separate returns that year and have filed consolidated returns since then. The group results for the years, excluding the NOL deduction, are shown below. $$\begin{array} { | c | c | c | } \hline \text { Corporation } & \begin{array} { c } \text { Taxable Income } \\\text { Last year }\end{array} & \begin{array} { c } \text { Taxable Income } \\\text { Current year }\end{array} \\\hline \text { Trix } & ( \$ 12,000 ) & \$ 34,000 \\\text { Track } & ( 10,000 ) & ( 2,000 ) \\\text { Consolidated Taxable Income } & ( \$ 22,000 ) & \$ 32,000 \\\hline\end{array}$$ Which of the following statements is incorrect?

• A) Last year is an SRLY (separate return limitation year) with respect to Track Corporation.
• B) Track's last year loss is offset against the consolidated current taxable income.
• C) Track's last year loss can be used to offset the current year's consolidated taxable income.
• D) None of Track's last year's loss can be used to offset the current year's consolidated taxable income.

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Definitions:

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