Toby Corporation Owns 85% of James Corporation's Single Class of Stock

question 6

Essay

Toby Corporation owns 85% of James Corporation's single class of stock and 35% of Mony Corporation's single class of stock. James Corporation owns 45% of Mony's stock. The remainder of James and Mony's stock is owned by 80 individual shareholders. Are the corporations part of an affiliated group, and can they elect to file a consolidated tax return?

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Definitions:

Traditional

Pertaining to customs, beliefs, or practices that have been passed down through generations or have been established by long usage.

Constructs

Conceptual elements or tools used to measure or represent phenomena in the scientific and psychological fields.

People

Human beings collectively, often referred to in the context of society, organizations, or groups.

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The surrounding conditions or settings in which individuals, communities, or organisms live and interact.