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Mandarini Mandarini
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7 years ago
Pants and Skirt Corporations are affiliated and have filed consolidated tax returns for the past three years. Pants acquires 100% of Zipper stock on January 1 of this year. Zipper Corporation filed separate returns previously. Pants, Skirt, and Zipper filed a consolidated return for the current year and reported the following taxable incomes:

Corporation   Taxable Income
Last year   Taxable Income
Current year
Pants
Skirt
Zipper
CTI   $18,000
    9,000
    7,000
 $34,000   $ 12,000
    8,000
  (29,000)
($ 9,000)

The $9,000 consolidated NOL reported in the current year
A) can offset taxable income of Pants and Skirt Corporations from last year.
B) can offset Zipper Corporation separate return taxable income only from last year.
C) can be used only as a carryover to the future.
D) can offset Zipper Corporation separate return taxable income from last year and then be carried forward to offset the affiliated group's subsequent taxable income.
Textbook 
Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts

Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts


Edition: 27th
Authors:
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genflynngenflynn
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7 years ago
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We have the most crude accounting tools. It's tragic because our accounts and our national arithmetic doesn't tell us the things that we need to know.

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Mandarini Author
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#2
6 years ago
finished my 2 tests in under 30 min thanks to you
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