Keep Corporation joined an affiliated group by merger.The group generated a consolidated NOL this year,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

As Keep Corporation is now part of the affiliated group, refunds or tax reductions resulting from the consolidated NOL will be received solely by the parent, and not by each member of the group separately. Therefore, Keep Corporation will not receive any separate refunds or tax reductions resulting from its share of the NOL.

Keep Corporation Joined an Affiliated Group by Merger