Create, Inc

question 27

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 income tax return for the current year, assuming that 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.

---

Definitions:

Exponential Smoothing Model

A forecasting technique that applies decreasing weights to past data, with the most recent data weighted most heavily.

Mean Absolute Deviation

A measure of variability that quantifies the average of the absolute deviations of each data point from the data set's mean.

Smoothing Constant

A parameter used in exponential smoothing methods to weigh the importance of historical data in forecasting.

Regression Method

A statistical process for estimating the relationships among variables, often used for prediction and forecasting.