Create, Inc

question 124

Multiple Choice

Create, Inc., a domestic corporation, owns 90% of Vinyl, Ltd., a foreign corporation and Digital, Inc., a domestic corporation. Create also owns 60% of Record, Inc., a domestic corporation. Create receives no distributions from any of these corporations. Which of these entities' net income are included in Create's Federal tax return for the current year assuming Create elects to include all eligible entities in its consolidated Federal income tax return?

• A)Create, Vinyl, Digital, and Record.
• B)Create, Vinyl, and Digital.
• C)Create, Vinyl, and Record.
• D)Create and Digital.

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Definitions:

Coercive Power

The ability of a person to influence others' actions through threats, punishment, or negative reinforcement.

Verbally Abuse

the act of using words to mistreat or insult another person, often resulting in emotional harm.

Withhold Support

The act of intentionally refraining from providing assistance, endorsement, or resources that could aid someone or something.

Referent Power

An elusive power that is based on interpersonal attraction.