Therefore nols are not allowed at the s corporation

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Unformatted text preview: that any inter32 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 company transactions exist; therefore, there are no elimination entries to make before consolidating the net income (loss). The consolidated net operating loss is calculated as follows: ParentCo. $ 50,000 SubOne (60,000) SubTwo (40,000) $(50,000) NOL Choice "a" is incorrect. A consolidated net loss of $50,000 exists, as calculated above. Choice "b" is incorrect. A consolidated net loss of $50,000 exists, as calculated above. Choice "d" is incorrect. The income from ParentCo. ($50,000) is netted with the losses from the subsidiaries ($100,000) to arrive at the consolidated net operating loss of $50,000. CPA-05281 Type1 M/C A-D Corr Ans: C PM#105 R 3-01 72. CPA-05281 Released 2006 Page 19 Which of the following types of entities is entitled to the net operating loss deduction? a. b. c. d. Partnerships....
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