Mariano Owns All of Alpha Corporation, Which Owns 100% of Beta

question 8

Multiple Choice

Mariano owns all of Alpha Corporation, which owns 100% of Beta Corporation's single class of stock. On January 1, Alpha and Beta Corporations report a consolidated NOL carryover from prior years. What is the maximum percentage of Alpha Corporation's single class of stock that Mariano can sell to a single shareholder without triggering the Sec. 382 loss limitation?

• A) 50%
• B) 75%
• C) 80%
• D) 0%

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Definitions:

Perceived

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Situational

Relating to or dependent upon a set of circumstances or context that affects behavior, decisions, or events.

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Stillborn Baby

A term for a baby born with no signs of life at or after 24 weeks of pregnancy.