Parent and Subsidiary Corporations Form an Affiliated Group How Much of the Subsidiary Loss Can Be Carried Back

question 11

Multiple Choice

Parent and Subsidiary Corporations form an affiliated group.Last year,the initial year of operation,Parent and Subsidiary filed separate returns.This year.the group files a consolidated return. $$\begin{array}{l}\text { Taxable Income }\\\begin{array} { l | r | r } \hline & { \text { Last } } & { \text { Current } } \\\hline \text { Parent } & ( \$ 16,000 ) & \$ 20,000 \\\hline \text { Subsidiary } & 10,000 & ( 21,000 ) \\\hline\end{array}\end{array}$$ How much of the Subsidiary loss can be carried back to last year?

• A)$0
• B)$1,000
• C)$10,000
• D)none of the above

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Definitions:

Astrocytes

Star-shaped glial cells in the brain and spinal cord involved in physical and nutritional support for neurons, neurotransmitter regulation, and the formation of the blood-brain barrier.

Microglial Cells

Specialized cells in the central nervous system that act as the primary immune defense and play a role in inflammation and repair after injury.

Cytoplasm Extensions

Structures such as pseudopodia that extend from the cell body to aid in movement or feeding.

Capillaries

Tiny blood vessels that connect arteries and veins, facilitating the exchange of water, oxygen, carbon dioxide, and other nutrients and waste substances between blood and tissues.