Questions from Federal Taxation

Q: One consolidated group member lends money to another member of its group

One consolidated group member lends money to another member of its group. Both corporations use the accrual method of accounting. Explain how the lending group member reports its interest income and h...

Q: Brooklyn and Bronx Corporations become an affiliated group at the beginning of

Brooklyn and Bronx Corporations become an affiliated group at the beginning of the current year. Will the corporations obtain a greater charitable contribution deduction for the current year by filing...

Q: An affiliated group elects to file a consolidated tax return. Explain

An affiliated group elects to file a consolidated tax return. Explain why the group’s consolidated capital gain net income or net capital loss is not merely the sum of the members’ separate capital ga...

Q: Indicate the tax treatment for each of the following dividends received by

Indicate the tax treatment for each of the following dividends received by a corporation that is a member of an affiliated group filing a consolidated tax return: a. Dividend received from a corporati...

Q: P, S, and T Corporations comprise a consolidated group.

P, S, and T Corporations comprise a consolidated group. In the current year, P has a profit, while S and T both incur a loss. The net of P’s profit with S’s and T’s losses result in a consolidated NOL...

Q: An affiliated group has a consolidated NOL for the current year.

An affiliated group has a consolidated NOL for the current year. What factors could determine whether it would be advantageous or disadvantageous for the group to elect to forgo the carryback of the c...

Q: Define the term SRLY and explain its significance and application to a

Define the term SRLY and explain its significance and application to a consolidated tax return.

Q: Alpha and Baker Corporations, accrual method of accounting corporations that use

Alpha and Baker Corporations, accrual method of accounting corporations that use the calendar year as their tax year, have filed consolidated tax returns for several years. Baker, a 100%-owned subsidi...

Q: Wildcat Corporation is the parent company of a three-member affiliated

Wildcat Corporation is the parent company of a three-member affiliated group. Wildcat and Badger Corporations have filed consolidated tax returns for several years. Early in the current year, Wildcat...

Q: On January 10 of the current year, Mary transfers to Green

On January 10 of the current year, Mary transfers to Green Corporation a machine purchased three years ago for $100,000. On the transfer date, the machine has a $60,000 adjusted basis and a $110,000 F...