The Nanie Consolidated Group Reported the Following Taxable Income Amounts $$\begin{array} { l l } \text { Parent } & ( \$ 400,000 ) \\\text { Junior } & ( \$ 600,000 ) \\\text { Minor } & \$ 100,000\end{array}$$

question 85

Multiple Choice

The Nanie consolidated group reported the following taxable income amounts. Parent owns all of the stock of both Junior and Minor. Determine the net operating loss NOL) that is apportioned to Minor.
$$\begin{array} { l l } \text { Parent } & ( \$ 400,000 ) \\\text { Junior } & ( \$ 600,000 ) \\\text { Minor } & \$ 100,000\end{array}$$

• A) $100,000.
• B) $300,000.
• C) $0. Minor did not report an NOL of its own.
• D) $0. All NOLs of a consolidated group are apportioned to the parent.

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Definitions:

Rent-seeking Activities

Rent-seeking activities involve individuals or businesses trying to increase their share of existing wealth without creating new wealth, often through manipulation or exploitation of the economic environment.

Legal Structure

The organization of a business as determined by its legal status, such as a sole proprietorship, partnership, corporation, or LLC.

Property Income

Property income refers to earnings one receives from property investments, including rents, dividends, and interest.

Politically Directed Spending

Government expenditure that is determined more by political considerations than by economic efficiency or need.