Thanks for your HELP! 50. Parent and Subsidiary Corporations form an affiliated group. Last year, the initial year of op...
Thanks for your HELP!
50. Parent and Subsidiary Corporations form an affiliated group. Last year, the initial year of operation, Parent and Subsidiary filed separate returns. This year the group files a consolidated return.
Taxable Income
|
Last |
Current |
|
|
Parent |
($15,000) |
$25,000 |
|
Subsidiary |
12,000 |
(27,000) |
How much of the Subsidiary loss can be carried back to last year?
A) $0
B) $1,000
C) $2,000
D) none of the above
Homework Answers
Under consolidated return, Loss of a corporation can be set off against the other.
Subsidiary loss can be carried back to last year = $27,000 - $25,000 = $2,000
The answer is C.
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