Question 1

A parent-subsidiary controlled group exists where there is percent ownership of all of the affiliates within the group, and there is an identifiable corporation.

Accepted Answer

The answer of A parent-subsidiary controlled group exists where there...

Question 2

When an affiliated group elects to file Federal consolidated income tax returns, it gives up the ability to claim a
deduction for distributions of profits paid to other members.

Accepted Answer

The answer of When an affiliated group elects to file...

Question 3

All members of an affiliated group have and liability for each other's Federal income tax liabilities.

Accepted Answer

The answer of All members of an affiliated group have...

Question 4

In computing consolidated taxable income, the purchase at a realized gain of a depreciable asset by Subsidiary from
Parent is an example of an) transaction.

Accepted Answer

The answer of In computing consolidated taxable income, the purchase...

Question 5

If, on joining an affiliated group, SubCo has a different tax year than that of ParentCo, SubCo must switch its year- end to ParentCo's by the end of the first, second, etc.) tax year after the election to consolidate.

Accepted Answer

The answer of If, on joining an affiliated group, SubCo...

Question 6

Deferring recognition of an intercompany gain is one advantage/disadvantage) of electing to file consolidated returns.

Accepted Answer

The answer of Deferring recognition of an intercompany gain is...

Question 7

Dividends paid out of a subsidiary's E & P to the parent cause a positive/negative)
adjustment to the parent's stock basis of the subsidiary.

Accepted Answer

The answer of Dividends paid out of a subsidiary's E...

Question 8

When negative adjustments are made to the stock basis of the subsidiary that exceed the basis as of the beginning of the tax year, an) account is created rather than giving the parent a negative tax basis in the stock.

Accepted Answer

The answer of When negative adjustments are made to the...

Question 9

In computing consolidated taxable income, the profit/loss from a sale between Subsidiary and Parent is an example of an) ____________________ item.

Accepted Answer

The answer of In computing consolidated taxable income, the profit/loss...

Question 10

Consolidated estimated tax payments must begin for the first, second, etc.) tax year after the group's election.

Accepted Answer

The answer of Consolidated estimated tax payments must begin for...

Question 11

The rules can limit the net operating loss deduction claimed on a Federal consolidated return.

Accepted Answer

The answer of The rules can limit the net operating...

Question 12

In terms of the consolidated return rules, the Radcliffe Charitable Foundation is an)
entity.

Accepted Answer

The answer of In terms of the consolidated return rules,...

Question 13

Generally, when a subsidiary leaves an ongoing consolidated group, it must wait years before it again can reenter the parent's consolidated group.

Accepted Answer

The answer of Generally, when a subsidiary leaves an ongoing...

Question 14

The calendar year parent and affiliates must elect to file on a consolidated basis by 15 after the first consolidated tax year.

Accepted Answer

The answer of The calendar year parent and affiliates must...

Question 15

If there is a balance in the excess loss account when a subsidiary's stock is sold, the balance is recognized as
____________________ gain/income.

Accepted Answer

The answer of If there is a balance in the...

Question 16

Consolidated return members determine which affiliates will pay how much of the annual Federal income tax liability by making an) election.

Accepted Answer

The answer of Consolidated return members determine which affiliates will...

Question 17

In computing consolidated taxable income, a net capital gain/loss is an example of an)
item.

Accepted Answer

The answer of In computing consolidated taxable income, a net...

Question 18

The consolidated return rules combine the members' transactions involving items
e.g., §
1231 gain/loss) when computing consolidated taxable income.

Accepted Answer

The answer of The consolidated return rules combine the members'...

Question 19

Within a Federal consolidated income tax group, SubOne can/cannot) use the LIFO
inventory method at the same time that SubTwo uses the FIFO method.

Accepted Answer

The answer of Within a Federal consolidated income tax group,...

Question 20

Most of the rules governing the use of consolidated returns are found in tax
____________________ Code/Regulations), and not the ____________________ Code/Regulations).

Accepted Answer

The answer of Most of the rules governing the use...

Quiz 8: Consolidated Tax Returns

A parent-subsidiary controlled group exists where there is percent ownership of all of the affiliates within the group, and there is an identifiable corporation.

When an affiliated group elects to file Federal consolidated income tax returns, it gives up the ability to claim a deduction for distributions of profits paid to other members.

All members of an affiliated group have and liability for each other's Federal income tax liabilities.

In computing consolidated taxable income, the purchase at a realized gain of a depreciable asset by Subsidiary from Parent is an example of an) transaction.

If, on joining an affiliated group, SubCo has a different tax year than that of ParentCo, SubCo must switch its year- end to ParentCo's by the end of the first, second, etc.) tax year after the election to consolidate.

Deferring recognition of an intercompany gain is one advantage/disadvantage) of electing to file consolidated returns.

Dividends paid out of a subsidiary's E & P to the parent cause a positive/negative) adjustment to the parent's stock basis of the subsidiary.

When negative adjustments are made to the stock basis of the subsidiary that exceed the basis as of the beginning of the tax year, an) account is created rather than giving the parent a negative tax basis in the stock.

In computing consolidated taxable income, the profit/loss from a sale between Subsidiary and Parent is an example of an) ____________________ item.

Consolidated estimated tax payments must begin for the first, second, etc.) tax year after the group's election.

The rules can limit the net operating loss deduction claimed on a Federal consolidated return.

In terms of the consolidated return rules, the Radcliffe Charitable Foundation is an) entity.

Generally, when a subsidiary leaves an ongoing consolidated group, it must wait years before it again can reenter the parent's consolidated group.

The calendar year parent and affiliates must elect to file on a consolidated basis by 15 after the first consolidated tax year.

If there is a balance in the excess loss account when a subsidiary's stock is sold, the balance is recognized as ____________________ gain/income.

Consolidated return members determine which affiliates will pay how much of the annual Federal income tax liability by making an) election.

In computing consolidated taxable income, a net capital gain/loss is an example of an) item.

The consolidated return rules combine the members' transactions involving items e.g., § 1231 gain/loss) when computing consolidated taxable income.

Within a Federal consolidated income tax group, SubOne can/cannot) use the LIFO inventory method at the same time that SubTwo uses the FIFO method.

Most of the rules governing the use of consolidated returns are found in tax Code/Regulations), and not the Code/Regulations).

Quiz 8: Consolidated Tax Returns

A parent-subsidiary controlled group exists where there is percent ownership of all of the affiliates within the group, and there is an identifiable corporation.

When an affiliated group elects to file Federal consolidated income tax returns, it gives up the ability to claim a deduction for distributions of profits paid to other members.

All members of an affiliated group have and liability for each other's Federal income tax liabilities.

In computing consolidated taxable income, the purchase at a realized gain of a depreciable asset by Subsidiary from Parent is an example of an) transaction.

If, on joining an affiliated group, SubCo has a different tax year than that of ParentCo, SubCo must switch its year- end to ParentCo's by the end of the first, second, etc.) tax year after the election to consolidate.

Deferring recognition of an intercompany gain is one advantage/disadvantage) of electing to file consolidated returns.

Dividends paid out of a subsidiary's E & P to the parent cause a positive/negative) adjustment to the parent's stock basis of the subsidiary.

When negative adjustments are made to the stock basis of the subsidiary that exceed the basis as of the beginning of the tax year, an) account is created rather than giving the parent a negative tax basis in the stock.

In computing consolidated taxable income, the profit/loss from a sale between Subsidiary and Parent is an example of an) ____________________ item.

Consolidated estimated tax payments must begin for the first, second, etc.) tax year after the group's election.

The rules can limit the net operating loss deduction claimed on a Federal consolidated return.

In terms of the consolidated return rules, the Radcliffe Charitable Foundation is an) entity.

Generally, when a subsidiary leaves an ongoing consolidated group, it must wait years before it again can reenter the parent's consolidated group.

The calendar year parent and affiliates must elect to file on a consolidated basis by 15 after the first consolidated tax year.

If there is a balance in the excess loss account when a subsidiary's stock is sold, the balance is recognized as ____________________ gain/income.

Consolidated return members determine which affiliates will pay how much of the annual Federal income tax liability by making an) election.

In computing consolidated taxable income, a net capital gain/loss is an example of an) item.

The consolidated return rules combine the members' transactions involving items e.g., § 1231 gain/loss) when computing consolidated taxable income.

Within a Federal consolidated income tax group, SubOne can/cannot) use the LIFO inventory method at the same time that SubTwo uses the FIFO method.

Most of the rules governing the use of consolidated returns are found in tax ____________________ Code/Regulations), and not the ____________________ Code/Regulations).

Most of the rules governing the use of consolidated returns are found in tax Code/Regulations), and not the Code/Regulations).