Mako and Snufco Corporations Are Affiliated and Have Filed Consolidated

question 23

Multiple Choice

Mako and Snufco Corporations are affiliated and have filed consolidated returns for the past three years.Mako acquired 100% of Zebco stock on January 1 of last year, the date of Zebco's formation.Mako, Snufco, and Zebco, who have filed consolidated returns for last year and the current year, report the following taxable incomes. The $15,000 consolidated NOL reported in the current year

• A) cannot be carried back.
• B) can be carried back three years ago only.
• C) can be carried back to last year and the remainder, if any, carried forward to subsequent years.
• D) can only be used in future years.

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Definitions:

Free-association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship as a way to explore unconscious thoughts and feelings.

Abreaction

A psychological process in which repressed emotional tension is released and expressed, often through verbalization or reenactment of past traumatic events.

Gestalt Therapy

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, within the environment and in the context of their social relationships.

The Present

The current moment or period of time that is neither past nor future.