Toby Corporation Owns 85% of James Corporation's Single Class of Stock

question 6

Essay

Toby Corporation owns 85% of James Corporation's single class of stock and 35% of Mony Corporation's single class of stock. James Corporation owns 45% of Mony's stock. The remainder of James and Mony's stock is owned by 80 individual shareholders. Are the corporations part of an affiliated group, and can they elect to file a consolidated tax return?

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Definitions:

Preoperational Children

A stage in Jean Piaget's theory of cognitive development, usually from ages 2 to 7, where children are beginning to engage in symbolic play but are not yet capable of logical thought.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and others, and to understand that others have beliefs and perspectives different from one's own.

Passive Sentences

Sentences in which the subject receives the action, often characterized by the use of "by" to introduce the doer.

Active Ones

Individuals who are energetically involved in activities or the initiation of actions.