Parent Corporation Owns All of the Stock of Richards and Smith

question 73

Multiple Choice

Parent Corporation owns all of the stock of Richards and Smith Corporations on January 1. The three corporations have filed consolidated tax returns for a number of calendar years. Parent sells all of the stock of Richards Corporation on June 1. Parent purchases all of the stock of Taylor Corporation on September 1. Parent sells all of the stock of Smith Corporation on November 1. When does the affiliated group terminate?

• A)June 1
• B)September 1
• C)November 1
• D)The original affiliated group does not terminate.

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Definitions:

Ideology

A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.

Elites

Denotes a small, privileged group in society that holds a significant amount of power, wealth, or status compared to the broader population.

Class Consciousness

Awareness by a social class of its own interests, conditions, and the need for collective action to bring about social change.

Objective Economic

Relating to economic phenomena that can be quantitatively measured and analyzed without bias or subjective interpretation.