A Federal consolidated group reported the following taxable income amounts. Parent owns all of the stock of both Junior and Minor. Determine the net operating loss NOL) that is apportioned to Parent.
A) $360,000.
B) $400,000.
C) $500,000.
$$\begin{array} { l l }
\text { Parent } & ( \$ 400,000 ) \
\text { Junior } & ( \$ 600,000 ) \
\text { Minor } & \$ 100,000
\end{array}$$
D) $900,000. All NOLs of a consolidated group are apportioned to the parent.

Question

A Federal consolidated group reported the following taxable income amounts. Parent owns all of the stock of both Junior and Minor. Determine the net operating loss NOL) that is apportioned to Parent.
A) $360,000.
B) $400,000.
C) $500,000.
$$\begin{array} { l l } 
\text { Parent } & ( \$ 400,000 ) \
\text { Junior } & ( \$ 600,000 ) \
\text { Minor } & \$ 100,000
\end{array}$$
D) $900,000. All NOLs of a consolidated group are apportioned to the parent.

Quizplus · Accepted Answer

The Parent's taxable income is a loss of $400,000, which is the NOL apportioned to the Parent. The NOL is calculated based on the Parent's individual loss, not the entire group's loss.