TopCo owns all of the stock of BottomCo. Both taxpayers are subject to the alternative minimum tax (AMT) this year for the first time, due to a dependence on accelerated MACRS deductions. The corporations incurred no intercompany transactions during the year. TopCo has a consolidation election in effect for the group.
If the affiliates were to file separate Forms 1120 this year, the following amounts would be reported.

a. Comment on the effects of the consolidation election on the companies' AMT liabilities.

Question

TopCo owns all of the stock of BottomCo. Both taxpayers are subject to the alternative minimum tax (AMT) this year for the first time, due to a dependence on accelerated MACRS deductions. The corporations incurred no intercompany transactions during the year. TopCo has a consolidation election in effect for the group.
If the affiliates were to file separate Forms 1120 this year, the following amounts would be reported.
  
a. Comment on the effects of the consolidation election on the companies' AMT liabilities.

Quizplus · Accepted Answer

The Answer of TopCo owns all of the stock of BottomCo. Both taxpayers are subject to the alternative minimum tax (AMT) this year for the first time, due to a dependence on accelerated MACRS deductions. The corporations incurred no intercompany transactions during the year. TopCo has a consolidation election in effect for the group.
If the affiliates were to file separate Forms 1120 this year, the following amounts would be reported.
  
a. Comment on the effects of the consolidation election on the companies' AMT liabilities.

TopCo Owns All of the Stock of BottomCo