ParentCo Purchased All of the Stock of SubCo on January

question 49

Multiple Choice

ParentCo purchased all of the stock of SubCo on January 2,2009,and the two companies filed consolidated returns for 2009 and thereafter.Both entities were incorporated in 2008.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.No § 382 limit applies.

To what extent can SubCo's 2008 losses be used by the group in 2011?

• A)$125,000.
• B)$75,000.
• C)$20,000.
• D)$0.

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Definitions:

Communication Process

The exchange of information between a sender and a receiver through a medium, involving encoding, transmission, decoding, and feedback.

Claritin

A brand name for loratadine, a non-drowsy antihistamine drug used to relieve allergy symptoms.

Allergy Symptoms

Physical manifestations that occur as a reaction of the immune system to allergens, including sneezing, itching, and swelling.

Noise

In communication, any unrelated or disrupting sounds or information that interferes with the clear transmission or reception of messages.