apply the controlled and affiliated group rules to determine whether a parent subsid 699096

Aug 30, 2021 | Uncategorized

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
Controlled Group?

Affiliated Group?

a.

Throughout the year, Parent owns

Y

N

Y

N
 

65% of the stock of SubCo.

 

 

    

b.

Parent owns 70% of SubCo. The other

Y

N

Y

N
 

30% of SubCo stock is owned by

 

 

 

  
 

Senior, a wholly owned subsidiary of

 

 

 

  
 

Parent.

        

c.

For 11 months, Parent owns 75% of

Y

N

Y

N
 

the stock of SubCo. For the last month

 

 

 

  
 

of the tax year, Parent owns 100% of

 

 

 

  
 

the SubCo stock.