Parent and Subsidiary Corporations Form an Affiliated Group

question 13

Multiple Choice

Parent and Subsidiary Corporations form an affiliated group.Last year,the initial year of operation,Parent and Subsidiary filed separate returns.This year.the group files a consolidated return. 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:

Output

The amount of something produced by a person, machine, or industry.

Average Cost

The total cost divided by the quantity produced, measuring how much on average each unit of output costs to produce.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced; it decreases as production increases.

Average Variable Cost

The total variable cost divided by the quantity of output produced, indicating the variable cost of producing each unit of output.