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 taxable profit.For that year,Duck can deduct up to $150,000 of Cooper's NOL in computing consolidated taxable income.

Question

Quizplus · Accepted Answer

When a corporation joins a consolidated tax return group, any NOL carryforward it has can be utilized by the group. In this case, since Cooper Corporation generated a taxable profit of $150,000, Duck can deduct up to that amount of Cooper's NOL in computing the group's consolidated taxable income.

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