Blair and Cannon Corporations Are the Two Members of an Affiliated

question 87

Multiple Choice

Blair and Cannon Corporations are the two members of an affiliated group.No prior net Sec.1231 losses have been reported by any group member.The two corporations report consolidated ordinary income of $100,000 and gains and losses from property transactions as follows: Included in the above totals is $6,000 of long-term capital losses recognized by Cannon on an intercompany transaction.Excluded from the above is a $4,000 Sec.1231 gain originally deferred by Cannon that must be reported by the group in the current year.
Which one of the following statements is incorrect?

• A)The consolidated group must report a net long-term capital gain of $9,000 and a net short-term capital gain of $1,000.
• B)Cannon Corporation's separate return reports a $6,000 net long-term capital gain.
• C)The affiliated group reports a $4,000 net Sec.1231 gain.
• D)None of the above statements are incorrect.

Comprehend the value of sustainable ecosystems compared to those converted for human use.

Recognize the consequences of human activities on the phosphorus cycle and algal blooms in freshwater ecosystems.

Know the role of different bacteria in the nitrogen cycle and their importance in ecosystem nitrogen replenishment.

Analyze the trade-offs in ecological services due to large-scale industrial agriculture.

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Definitions:

Service Company

Business that provides a service.

Law Firm

A business entity formed by one or more lawyers to engage in the practice of law.

Manufacturer

Business that makes a product and sells it to its customers.

Accounting Organization

An entity or structured group that sets accounting standards, rules, and provides guidance for accounting practices and procedures.