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:

Time Utility

Availability of a good or service when customers want to purchase it.

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The needs that customers believe they need as identified through their personal perceptions, which may not always align with their actual needs.