P and S Comprise an Affiliated Group That Filed Consolidated

question 42

Multiple Choice

P and S comprise an affiliated group that filed consolidated returns in 2018,2019 and 2020.They report the following for 2018,2019 and 2020. Taxable Income
$\begin{array}{|l|r|r|r|} \hline& 2018 & 2019 & 2020 \\\hline \text { Parent } & 100 & 200 & 200 \\\hline \text { Subsidiary } & (500) & 100 & 100 \\\hline\end{array}$ How much of the Subsidiary 2018 loss can be utilized against consolidated net income in 2019?

• A)$240
• B)$400
• C)$300
• D)$80

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Definitions:

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Evolutionary Perspective

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Triangular Theory

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