ParentCo Owned 100% of SubCo for the Entire Year, and Both

question 144

Multiple Choice

ParentCo owned 100% of SubCo for the entire year, and both companies use the accrual method of tax accounting. During the year, SubCo purchased $20,000 of supplies from ParentCo. In addition, SubCo provided internal audit services to ParentCo, which were worth $40,000. Including these transactions, ParentCo's separate taxable income was $75,000, and SubCo's separate taxable income was $100,000. What is the group's consolidated taxable income for the year?

• A) $215,000
• B) $195,000
• C) $175,000
• D) $155,000

Understand the principles and applications of various training techniques and programs.

Grasp the concept of emotional intelligence and its significance in the workplace.

Identify the components necessary for effective training and conditions conducive to learning.

Recognize the role of ethics and corporate social responsibility in management training.

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Definitions:

Replanting

The action of planting plants or seeds in the ground again, often to regenerate an area of forest or to grow a new crop.

Carbon-containing Gases

Gases that include carbon atoms in their molecules, such as carbon dioxide and methane, often impacting the greenhouse effect.

Deforested Areas

Regions where forests have been cleared or removed, often resulting in habitat loss and biodiversity decline.

Sclerenchyma

A type of plant tissue known for its thick, rigid cell walls and function in providing support and strength.