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:

Heroin

An opioid drug made from morphine, a natural substance taken from the seed pod of various opium poppy plants, often used illicitly for its euphoric effects.

Blastula Stage

An early stage in the embryonic development of animals characterized by a spherical layer of cells (the blastoderm) surrounding a fluid-filled cavity (the blastocoel).

Ciliary Action

The movement of cilia, tiny hair-like structures, that help to move fluid or materials across the surface of certain cells.

Muscular Contraction

Muscular contraction is the process where muscle fibers shorten or contract, generating force and movement in the body.