Ambee Ltd. commenced operations in 2019, and has two separate lines of business. They are a mail order operation selling organic food products, and an operation that provides accounting services to small business. The income (loss)of the two operations for the years 2019 and 2020 are as follows: The Company has no deductions from Net Income For Tax Purposes other than possible loss carry forwards from 2019.
Determine the minimum Taxable Income for each of the two years, and any loss carry forward available at the end of the year assuming that there was no acquisition of control in either year. How would your answer be different if there was an acquisition of control on January 1, 2020?

Question

Ambee Ltd. commenced operations in 2019, and has two separate lines of business. They are a mail order operation selling organic food products, and an operation that provides accounting services to small business. The income (loss)of the two operations for the years 2019 and 2020 are as follows:  The Company has no deductions from Net Income For Tax Purposes other than possible loss carry forwards from 2019.
Determine the minimum Taxable Income for each of the two years, and any loss carry forward available at the end of the year assuming that there was no acquisition of control in either year. How would your answer be different if there was an acquisition of control on January 1, 2020?

Quizplus · Accepted Answer

The Answer of Ambee Ltd. commenced operations in 2019, and has two separate lines of business. They are a mail order operation selling organic food products, and an operation that provides accounting services to small business. The income (loss)of the two operations for the years 2019 and 2020 are as follows:  The Company has no deductions from Net Income For Tax Purposes other than possible loss carry forwards from 2019.
Determine the minimum Taxable Income for each of the two years, and any loss carry forward available at the end of the year assuming that there was no acquisition of control in either year. How would your answer be different if there was an acquisition of control on January 1, 2020?

Ambee Ltd Commenced Operations in 2019, and Has Two Separate Lines