Cooper Corporation joined the Duck consolidated Federal tax return group,when Cooper held a $1 million NOL carryforward.In its first year as a part of the Duck group,Cooper generated a $150,000 NOL.For that year,Duck can deduct up to $1,150,000 of Cooper's NOL in computing consolidated taxable income.

Question

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In a consolidated tax return, only the NOLs generated while a member of the group can be used to offset the group's income. Cooper's $1 million NOL carryforward from before joining the group cannot be used by Duck. Only the $150,000 NOL generated while part of the group can be used.

Cooper Corporation Joined the Duck Consolidated Federal Tax Return Group,when