Macaw Owned 100% of Flamingo for the Entire Year

question 9

Multiple Choice

Macaw owned 100% of Flamingo for the entire year.Macaw uses the accrual method of tax accounting, whereas Flamingo uses the cash method.During the year, Flamingo sold raw materials to Macaw for $10,000 under a contract that requires no payment to Flamingo until the following year. Exclusive of this transaction, Macaw had income for the year of $90,000, and Flamingo had income of $40,000.The group's consolidated taxable income for the year is:

• A)$120,000.
• B)$130,000.
• C)$140,000.
• D)Some other amount.
• E)Cannot be determined.

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Definitions:

Specific Behaviors

Concrete actions or reactions of individuals in certain situations, observed and measurable.

Non-Leaders

Individuals within an organization who are not in a designated leadership or management role.

Blake Mouton Grid

A managerial grid model that identifies five leadership styles based on the concern for people and the concern for production.

Concern For Production

The focus on optimizing and maximizing the output and efficiency of production processes within an organization.