In addition because the corporation is a personal

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Unformatted text preview: urn. c. Only corporations that issue their audited financial statements on a consolidated basis may file consolidated tax returns. 51 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 d. Operating losses of one group member may be used to offset operating profits of the other members included in the consolidated return. CPA-02206 Explanation Choice "d" is correct. Operating losses of one group member of a consolidated return may be used to offset operating profits of the other members included in the consolidated return. Choice "a" is incorrect. The common parent must directly own stock possessing at least 80% of the total voting power of at least one of the other includible corporations and having a value equal to at least 80% of the total value of the stock of the corporation. Choice "b" is incorrect. Intercompany dividends are eliminated during the process of consolidation and are therefore not includible to any extent in the consolidated return taxable income. Choice "c" is incorrect. No such requirement exists. CPA-02207 Type1 M/C 104. CPA-02207 A-D Nov 89 II #49 Corr Ans: A PM#10 R 3-99 Page 39 Ati Corp. has two common stockholders. Ati derives all of its income from investments in stocks and securities, and it regularly distributes 51% of its taxable income as dividends to its stockholders. Ati is a: a. b. c. d. Perso...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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