Parent and Subsidiary Corporations Form an Affiliated Group How Much of Subsidiary's Loss Can Be Carried Back to Year

question 13

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 tax return.The results for 2018 and 2019 are: Taxable Income
$$\begin{array} { | l | r | r | } \hline & { \mathbf { 2 0 1 8 } } & { \mathbf { 2 0 1 9 } } \\\hline \text { Parent } & ( \$ 10,000 ) & \$ 50,000 \\\hline \text { Subsidiary } & 30,000 & ( 25,000 ) \\\hline\end{array}$$ How much of Subsidiary's loss can be carried back to last year?

• A)$0
• B)$20,000
• C)$25,000
• D)none of the above

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Definitions:

Poisson Distribution

A statistical distribution showing the probability of a given number of events occurring in a fixed interval of time or space.

Discrete Probability Distribution

A mathematical function that represents the probabilities of occurrence of different possible outcomes for a discrete random variable.

Skewed To The Right

Describes a distribution of data where the tail on the right side of the histogram is longer or fatter than the left side, indicating that most of the data are concentrated to the left.

Symmetrical

A shape or distribution that is mirrored equally on both sides of a central axis.