Match Each of the Following Items with the Appropriate Description

question 40

Multiple Choice

Match each of the following items with the appropriate description, indicating whether the item increases or decreases the parent's basis in the stock of a subsidiary.
-Dividend paid to parent out of affiliate's E & P.

• A)Increases stock basis of subsidiary
• B)Decreases stock basis of subsidiary
• C)No effect on stock basis of subsidiary

---

Definitions:

Utility Function

A mathematical representation of how different quantities of goods or services generate satisfaction or utility for a consumer.

Berries

Compact, moist fruits typically suitable for eating, featuring a spherical shape, intense coloration, and flavors that span from sweet to acidic.

Nuts

Usually refers to edible seeds enclosed in a hard shell, considered healthy snacks and used as ingredients in various dishes.

Utility Function

A utility function represents the preferences of a consumer over a set of goods or services by assigning values to each possible bundle, reflecting the satisfaction gained.