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

question 47

Multiple Choice

Parent and Subsidiary Corporations form an affiliated group.In 2018,the initial year of operation,Parent and Subsidiary filed separate returns.In 2019,the group files a consolidated return. Taxable Income
$$\begin{array} { | l | r | r | } \hline & { \mathbf { 2 0 1 8 } } & \mathbf { 2 0 1 9 } \\\hline \text { Parent } & ( \$ 16,000 ) & \$ 20,000 \\\hline \text { Subsidiary } & 10,000 & ( 21,000 ) \\\hline\end{array}$$ 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:

Observers

Individuals who watch, monitor, or record the behavior or data in a study, without intervening or interacting with the subjects.

Coding system

A method or protocol used in research for categorizing, labeling, or encoding information to facilitate analysis.

Systematic observation

A structured method of data collection where the researcher carefully observes and records behavior according to a set of predefined criteria.

Reliability

Refers to the consistency and dependability of a measurement tool or test over time.