Cardinal and Bluebird Corporations Both Use a Calendar Year as Their

question 55

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 Bluebird'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:

Environmentally Preferable Purchasing Program

A strategy that encourages the acquisition of products and services that have a reduced impact on the environment.

Bill of Lading

A legal document issued by a carrier to acknowledge receipt of cargo for shipment, detailing the type, quantity, and destination of the goods being carried.

Material Specifications

Detailed descriptions of the properties, standards, and characteristics that materials must meet for their intended use in manufacturing or construction.

Quantity Shipped

The total amount of goods that have been sent to customers or distribution points within a specified period.