ParentCo and SubCo Have Filed Consolidated Returns Since Both Entities

question 7

Multiple Choice

ParentCo and SubCo have filed consolidated returns since both entities were incorporated in 2009.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 2011 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 only be used to offset SubCo's future income.
• E)cannot be used to offset any of ParentCo's 2009 income.

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Definitions:

Terminating Resistor

Used to prevent the twisted-wire pair used in a data bus from attracting signal interference by acting like a giant antenna. A current data bus uses two terminating resistors that test at 120 ohms. If one is missing, the data bus may function erratically, but if both are missing, no effective networking can take place.

J1939 Data Backbone

A part of the J1939 standard providing a means for the integration of various vehicle components over a common network, allowing them to communicate information.

Twisted Wire Pair

A type of wiring where two conductors are twisted together to cancel out electromagnetic interference and improve communication reliability.

Electromagnetic Interference

refers to the disturbance that affects an electrical circuit due to either electromagnetic induction or electromagnetic radiation emitted from an external source.