Parent Corporation Owns All of the Stock of Richards and Smith

question 32

Multiple Choice

Parent Corporation owns all of the stock of Richards and Smith Corporations on January 1. The three corporations have filed consolidated tax returns for a number of calendar years. Parent sells all of the stock of Richards Corporation on June 1. Parent purchases all of the stock of Taylor Corporation on September 1. Parent sells all of the stock of Smith Corporation on November 1. When does the affiliated group terminate?

• A) November 1
• B) September 1
• C) June 1
• D) The original affiliated group does not terminate.

Analyze the effects of aging on general health and susceptibility to illnesses.

Understand the concept and implications of organizational politics.

Recognize the role of political skills in job performance, job satisfaction, and career success.

Identify the behaviours and characteristics of high Machiavellians in organizational contexts.

---

Definitions:

Journal Entry

A record in accounting that represents a transaction, showing the accounts and amounts debited and credited, used to transfer values and maintain the ledger.

Consolidated Balance Sheet

A financial statement showing the combined assets, liabilities, and shareholders' equity of a parent company and its subsidiaries.

Fair Market Value

The price that an asset would sell for on the open market between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts.

Acquisition Cost

The total cost incurred to acquire an asset, including all charges necessary to bring the asset to its intended use.