ParentCo,SubOne and SubTwo Have Filed Consolidated Returns Since 2012

question 78

Multiple Choice

ParentCo,SubOne and SubTwo have filed consolidated returns since 2012.All of the entities were incorporated in 2011.Taxable income computations for the members include the following.None of the group members incurred any capital gain or loss transactions during these years,nor did they make any charitable contributions. How should the 2013 consolidated net operating loss be apportioned among the group members?
ParentCo SubOne SubTwo

• A)$60,000 $ 0 $ 0
• B)$20,000 $20,000 $20,000
• C)$ 0 $20,000 $40,000
• D)$ 0 $40,000 $20,000

---

Definitions:

Ending Work

Often referred to the ending work in process (WIP) inventory, it represents the value of products that are partially completed at the end of an accounting period.

Process Inventory

Inventory that is currently in various stages of the production process but not yet completed.

Manufacturer

An individual or company involved in the process of making goods for sale through the use of raw materials, components, or assemblies.

Schedule

A detailed plan that lists activities, tasks, or events with their intended timeframes.