Apply the controlled and affiliated group rules to determine whether a parent subsidiary controlled group or an affiliated group exists in each of the following independent situations. Circle Y for yes and N for no.
Situation |
Parent Subsidiary |
Affiliated Group? |
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a. |
Throughout the year, Parent owns |
Y |
N |
Y |
N |
65% of the stock of SubCo. |
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b. |
Parent owns 70% of SubCo. The other |
Y |
N |
Y |
N |
30% of SubCo stock is owned by |
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Senior, a wholly owned subsidiary of |
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Parent. |
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c. |
For 11 months, Parent owns 75% of |
Y |
N |
Y |
N |
the stock of SubCo. For the last month |
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of the tax year, Parent owns 100% of |
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the SubCo stock. |
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