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

question 61

Multiple Choice

Parent and Subsidiary Corporations form an affiliated group. In 2018, the initial year of operation, P and Subsidiary filed separate returns. In 2019, the group files a consolidated tax return. The results and 2019 are: $\begin{array}{l}\text { Taxable Income }\\\begin{array} { | l | r | r | } \hline & { \mathbf { 2 0 1 8 } } & { \mathbf { 2 0 1 9 } } \\\hline \text { Parent } & ( \$ 10,000 & \$ 50,000 \\\hline \text { Subsidiary } & 30,000 & ( 25,000 \\\hline\end{array}\end{array}$ How much of Subsidiary's loss can be carried back to last year?

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

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Definitions:

Pollinators

Animals or insects that transfer pollen from one flower to another, facilitating plant reproduction.

Megaspore

A type of spore in some plants that develops into a female gametophyte, distinguished by being larger than other types of spores, such as microspores.

Female Gametophyte

The gamete-producing structure in plants and algae that develops into the female gamete.

Embryo Sac

Female gametophyte (megagametophyte) of flowering plants.