ParentCo, SubOne, and SubTwo Have Filed Consolidated Returns Since Year

question 86

Short Answer

ParentCo, SubOne, and SubTwo have filed consolidated returns since year 2. All of the entities were incorporated in Taxable income computations for the members include the following. None of the group members incurred any capita transactions during these years, nor did they make any charitable contributions. $$\begin{array} { l c c c c } \text { Year } & \begin{array} { c } \text { ParentCo's } \\\text { Taxable Income }\end{array} & \begin{array} { c } \text { SubOne's Taxable } \\\text { Income }\end{array} & \begin{array} { c } \text { SubTwo's Taxable } \\\text { Income }\end{array} & \begin{array} { c } \text { Consolidated } \\\text { Taxable Income }\end{array} \\\text { Year 1 } & \$ 200,000 & \$ 50,000 & \$ 150,000 & \text { N/A } \\\text { Year 2 } & \$ 200,000 & ( \$ 60,000 ) & \$ 70,000 & \$ 210,000 \\\text { Year 3 } & \$ 20,000 & ( \$ 60,000 ) & ( \$ 40,000 ) & ? \\\text { Year 4 } & \$ 200,000 & \$ 130,000 & \$ 10,000 & ?\end{array}$$ How should the Year 3 consolidated net operating loss be apportioned among the group members?

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Definitions:

Sample Size

The number of observations or data points collected in a sample, which can influence the accuracy and reliability of statistical estimates.

Degrees of Freedom

Degrees of freedom refer to the number of values in a statistical calculation that are free to vary without violating the constraints of the calculation.

Population Standard Deviation

A measure of the dispersion or variability within a population data set, indicating how spread out the data points are from the mean.

Interval Estimate

An estimate of a population parameter that gives an interval believed to contain the parameter.