Parent and Subsidiary Corporations Form an Affiliated Group

question 46

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 tax return.The results for last year and the current year are: How much of Subsidiary's loss can be carried back to last year?

• A) $0
• B) $20,000
• C) $25,000
• D) none of the above

---

Definitions:

Involuntary Stable Single

A person's state of being single not by choice but due to circumstances that make changing this status difficult.

Remarried

The act of entering into marriage again after a divorce or the death of a spouse.

Wife Died

The occurrence of a spouse who is female passing away.

Defense of Marriage Act

A U.S. federal law enacted in 1996 that defined marriage for federal purposes as the union between one man and one woman, and allowed states to refuse to recognize same-sex marriages granted under the laws of other states. It was ruled unconstitutional in 2013.