ParentCo and SubCo Have Filed Consolidated Returns Since Both Entities

question 21

Multiple Choice

ParentCo and SubCo have filed consolidated returns since both entities were incorporated in 2011. Taxable income computations for the members include the following. Neither group member incurred any capital gain or loss transactions during these years, nor did they make any charitable contributions. The 2013 consolidated loss:

• A) must be carried forward before it can be carried back.
• B) must be carried forward, unless an election to forgo carryforward is made by the parent.
• C) must be carried back, unless an election to forgo the carryback is made by the parent.
• D) can be used only to offset SubCo's future income.
• E) cannot be used to offset any of ParentCo's 2011 income.

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Definitions:

Trophic Level

The position an organism occupies in a food chain, categorized by the number of energy transfer steps from primary producers to top predators.

Habitat

Place where an organism lives and is able to survive and reproduce.

Per Capita Rate

A statistical measure that expresses the quantity of something per individual person within a population or area.

Spawn

The process by which many aquatic animals release or deposit eggs into water.