X and Its Subsidiary B File a Consolidated Tax Return

question 34

Multiple Choice

X and its subsidiary B file a consolidated tax return for 2012.During the year, B distributes $15,000 cash to X.X's basis in its B stock is $9,000, and B has current earning and profits for its first year of $6,000.For 2012, no gain is recognized.How much will go to an excess loss account?

• A)$0
• B)$1,000
• C)$6,000
• D)$10,000
• E)$15,000

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Definitions:

Pillorying

The act of mocking, criticizing, or humiliating someone publicly.

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