Pants and Skirt Corporations Are Affiliated and Have Filed Consolidated

question 38

Multiple Choice

Pants and Skirt Corporations are affiliated and have filed consolidated tax returns for the past three years. Pants acquires 100% of Zipper stock on January 1 of 2019. Zipper Corporation filed separate returns previously. Pants, Skirt, and Zipper filed a consolidated return for 2019 and reported the following taxable incomes: How much of the 2018 Zipper NOL be used to offset CTI in 2019?

• A) $0
• B) $17,000
• C) $20,000
• D) $16,000

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Definitions:

Neurons

Specialized cells within the nervous system that transmit information to other nerve cells, muscle, or gland cells, primarily through electrical and chemical signals.

Maculae

Specialized structures in the vestibular system of the inner ear involved in detecting linear acceleration and gravitational forces.

Crista Ampullaris

Elevation on the inner surface of the ampulla of each semicircular duct for dynamic or kinetic equilibrium.

Semicircular Canals

Structures in the inner ear that are key to maintaining balance by detecting head movements.