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Alto and Bass Corporations Have Filed Consolidated Tax Returns for Several

Question 16

Multiple Choice

Alto and Bass Corporations have filed consolidated tax returns for several calendar years.At the close of business on September 30,Alto Corporation sells all of the Bass Corporation stock.What portion of Alto's and Bass's income for the current year will be included in the consolidated return,assuming its income is earned evenly throughout the year and all months have 30 days?


A)  Alto  Bass 100%100%\begin{array} { | l | l | } \hline \text { Alto } & \text { Bass } \\\hline 100 \% & 100 \% \\\hline\end{array}
B)  Alto  Bass 100%75%\begin{array} { | l | l | } \hline \text { Alto } & \text { Bass } \\\hline 100 \% & 75 \% \\\hline\end{array}
C)  Alto  Bass 75%75%\begin{array} { l l } \text { Alto } & \text { Bass } \\\hline 75 \% & 75 \%\end{array}
D) none of the above

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