Purple, Inc

question 22

Multiple Choice

Purple, Inc., a domestic corporation, owns 80% of Blue, Ltd., a foreign corporation and Yellow, Inc., a domestic corporation. Purple also owns 50% of Green, Inc., a domestic corporation. Purple receives no distributions from any of these corporations. Which of these entities' net income are included in Purple's Federal income tax return for the current year, assuming that Purple elects to include all eligible entities in its consolidated Federal income tax return?

• A)Purple, Blue, Yellow, and Green.
• B)Purple, Blue, and Yellow.
• C)Purple, Blue, and Green.
• D)Purple and Yellow.

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Definitions:

Facility Size

The physical dimensions or capacity of a building or space used for production, storage, or operations.

Distribution Operation

The process involved in the movement of goods from the manufacturer or supplier to the point of sale or end user.

Asset Utilization

A measure of how efficiently a company uses its assets to generate revenue, indicating the effectiveness with which it employs its resources.

3PL Warehouse

A third-party logistics provider that offers warehousing services among other supply chain management functions to its clients.