Atkon Corporation Acquired 90% of the Stock of Beta Corporation

question 1028

Multiple Choice

Atkon Corporation acquired 90% of the stock of Beta Corporation three years ago. Both corporations are located in the United States. Beta has been an energy drink producer, but unfortunately has suffered substantial losses due to government fines and lawsuits. All of its revenues had been from the sales of the energy drinks. Beta has now filed for bankruptcy and is closing the business with no assets remaining for shareholders. Atkon Corporation will recognize

• A) a long- term capital loss.
• B) an ordinary loss.
• C) a short- term capital loss.
• D) no gain or loss.

---

Definitions:

Analysis

The process of examining data or information in order to understand it better, often to draw conclusions or make decisions.

Direct Strategy

A communication approach that involves straightaway stating the main point at the beginning.

Reports

Structured accounts or statements describing the process, progress, or results of an investigation or analysis, intended to inform readers.

Formal Style

A manner of communication that follows a specific set of conventions or standards, often used in professional, academic, or legal settings.