ParentCo Purchased 100% of SubCo's Stock on January 1, 2014

question 50

Multiple Choice

ParentCo purchased 100% of SubCo's stock on January 1, 2014, and the companies have filed consolidated returns since then. 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 2015 net operating loss:

• A) may be carried back to offset SubCo's 2013 taxable income.
• B) may be carried forward only and applied against group income if so elected by ParentCo.
• C) cannot be carried back against 2013 SubCo income, as consolidated returns were not filed.
• D) either a or b, but not both.

---

Definitions:

Specification

Detailed and precise descriptions of the requirements, characteristics, or standards that a particular material, product, or service must meet.

Standardization

The process of establishing and applying rules, guidelines, and characteristics for activities or their results, aimed at achieving a high degree of order and consistency.

Technical Concept

An idea or principle that relates to the specifics of how something works or is engineered, often requiring specialized knowledge to understand.

Performance

The effectiveness with which a company, individual, or system operates to meet its objectives or benchmarks.