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:

Organizational Change

The process through which a company or organization undergoes a transformation in its culture, structure, processes, or strategies.

Group-Level

Pertains to analysis, decision-making, or dynamics that occur within a cohesive group of individuals within an organization.

Negative Feedback

A process in which the system responds in such a way as to reverse the direction of change. In a workplace context, it typically refers to constructive criticism aimed at improving performance.

Technology Company

A business focused on the development, production, and marketing of technology products or services, often in sectors like information technology, biotechnology, or engineering.