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Unformatted text preview: INCORRECT Instructor Explanation: A net operating loss arising in a consolidated return year must first be carried back two years (starting with the earliest year), and thereafter, if not completely absorbed, may be carried forward. However, the parent can elect to forgo any carryback, and thus carry the loss forward. The use of the 20x3 loss is not limited to SubCo, since the companies have filed consolidated returns for all years of their existence. Points Received: 0 of 2 6 . Question: (TCO 5) Which type of reorganization can be used to divide a corporation? Your Answer: Type A. Type B. Type D. CORREC T Type E. All of the above. Instructor Explanation: The “Type D” reorganization is typically used to divide a corporation although it can be used to acquire another corporation. Points Received: 2 of 2...
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- Spring '10
- Accounting, Political correctness