Cardinal and Bluebird Corporations Both Use a Calendar Year as Their

question 5

Multiple Choice

Cardinal and Bluebird Corporations both use a calendar year as their tax year. At the close of business on June 30, Cardinal Corporation buys all of Bluebird Corporation's stock. If the two corporations file a consolidated return and both corporations earn their income evenly throughout the year, what portion of Cardinal's income will be included in the consolidated return? (Assume all months have 30 days.)

• A)100%
• B)50%
• C)0%
• D)none of the above

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Definitions:

Olecranon Process

The prominent, pointed bone at the proximal end of the ulna, around which the elbow joint is formed.

Extension

A movement that increases the angle between two body parts, such as straightening a flexed knee.

Flexion

A movement decreasing the angle between two body parts, such as bending the arm at the elbow or the knee.

Extensor Carpi Ulnaris

A muscle located in the forearm that extends and adducts the wrist, playing a significant role in the movement of the hand and wrist.