When a Subsidiary Sells to the Parent Some Business-Use Property

question 64

True/False

When a subsidiary sells to the parent some business-use property that has appreciated from its $20,000 basis to a
$50,000 fair market value, the subsidiary immediately recognizes $30,000 ordinary income on the consolidated return.

---

Definitions:

Specific Needs

The distinct requirements or preferences of a customer or client that must be met by a product or service to ensure satisfaction.

Customer Profile Sheet

A document containing detailed information on a company's or salesperson's ideal customer, including demographic data, buying preferences, and behavior patterns.

Mailing List

A collection of email addresses or postal addresses used by individuals or organizations to send information, updates, or promotional material to multiple recipients simultaneously.

Circulation Vice President

An executive role responsible for overseeing the distribution and circulation strategies of publications in an organization.