Question

Question 11 Money Corporation has the following income and expenses for the tax year: $200,000 700,000 20,000 Gross profit on sales: Expenses: Dividends received from less-than-20%-owned domestic corporations: What is Money's net operating loss? $490,000 $494,000 $220,000 $520,000

Answer 1

A control group relationship exists if the businesses have one solution - 200 000 Gross profit on sales Add Dividends Grooss Income 20000 220000 Less expenses (700000) Taxable income before Dividend reclévable deduetion (480000) Less! - Dividends received deduction (14000) (20000 x 70%.) 494000 Net operating Loss Option ² is 494000 Coorelt. members of Jokes, klue, and Lion Corporations are a controlled group. option 3 is coorect Explanation ! - . parent - subsidiary. Brother sister and us combination of the above. In the given case, Joker, klue and lion Corporation are menybes of a controlled group