Keep Corporation joined an affiliated group by merger in 2005.The group generated a consolidated 2009 NOL,and Keep's share of the loss was $50,000.If the parent elects to forgo an NOL carryback,refunds or tax reductions resulting from the loss are received solely by the parent,and not by Keep separately.

Question

Quizplus · Accepted Answer

When a parent company elects to forgo an NOL carryback, refunds or tax reductions resulting from the loss are received solely by the parent, and not by the subsidiary companies (such as Keep Corporation in this case). Therefore, the statement is true.

Keep Corporation Joined an Affiliated Group by Merger in 2005