Parent and Subsidiary Corporations Form an Affiliated Group

question 44

Multiple Choice

Parent and Subsidiary Corporations form an affiliated group. In 2019, the initial year of operation, Parent and Subsidiary filed separate returns. In 2020 group files a consolidated return. Taxable Income How much of the Subsidiary loss can be carried back to last year?

• A)$0
• B)$1,000
• C)$10,000
• D)none of the above

---

Definitions:

Analogy

A comparison between two or more similar events or things.

Modus Tollens

A hypothetical syllogism in which the antecedent premise is denied by the consequent premise.

Deductive Arguments

A form of reasoning where the conclusion is logically derived from premises; if the premises are true, the conclusion must be true.

Inductive Arguments

Reasoning that moves from specific observations to broader generalizations and theories, often involving probability rather than certainty.