ParentCo, SubOne and SubTwo Have Filed Consolidated Returns Since Year

question 150

Multiple Choice

ParentCo, SubOne and SubTwo have filed consolidated returns since Year 2. All of the entities were incorporated in Year 1. Taxable income computations for the members include the following. None of the group members incurred any capital gain or loss transactions during these years, nor did they make any charitable contributions. $$\begin{array} { c c c c c } & \text { ParentCo's } & \text { SubOne's Taxable } & \text { SubTw o's Taxable } & \text { Consolidated } \\\text { Year } & \text { Taxable Income } & \text { Income } & \text { Income } & \text { Taxable Income } \\\text { Year 1 } & \$ 200,000 & \$ 50,000 & \$ 150,000 & \text { N/A } \\\text { Year 2 } & \$ 200,000 & ( \$ 60,000 ) & \$ 70,000 & \$ 210,000 \\\text { Year 3 } & \$ 20,000 & ( \$ 60,000 ) & ( \$ 40,000 ) & ? \\\text { Year 4 } & \$ 200,000 & \$ 130,000 & \$ 10,000 & ?\end{array}$$ How should the Year 3 consolidated net operating loss be apportioned among the group members? ParentCo SubOne SubTwo

• A)$80,000 $ 0 $ 0
• B)$ 0 $60,000 $40,000
• C)$ 0 $40,000 $40,000
• D)$ 0 $48,000 $32,000

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Definitions:

Premature Terminator

An individual who ends therapy or counseling sessions before reaching the agreed upon goals or resolving the issues that instigated seeking help.

Stage Of Change

A concept in behavioral science that identifies an individual's readiness to adopt new behaviors or abandon harmful ones, often used in contexts of therapy or behavior change.

Intensive Action-Oriented Treatment

Therapeutic approaches that are highly focused and active, often aiming to produce significant changes in a short period.

Durable Change

Long-lasting transformation or improvement in behavior, emotional state, or thought patterns as a result of therapeutic intervention.