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:

Lower Social Classes

A segment of society characterized by lower economic status, often associated with lower levels of education and limited access to resources.

Political Representation

The activity of making citizens' voices, opinions, and perspectives present in the public policy making processes, typically through elected officials.

Power Resource Theory

A theory in political and social science that analyzes the power of different societal groups based on their access to resources.

Distribution

The process of making a product or service available for the consumer or business user that needs it, including transportation, warehousing, and enabling sales.