Cardinal and Bluebird Corporations Both Use a Calendar Year as Their

question 5

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 Cardinal'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:

Traditional

Ideas, customs, or practices transmitted from generation to generation, often without change.

Social Hierarchy

The organization of individuals or groups in a society into levels of power, status, or priority, often based on factors like wealth, occupation, or social connections.

Economic Position

Relates to an individual's or entity's place or status in the economic hierarchy, influenced by income, wealth, and access to resources.

Dimensions of Power

The various ways in which power can be manifested or exercised in social, political, or personal contexts, including authority, influence, and control.