Question

A federal consolidated group reported the following taxable income amounts. The parent owns all of the stock of both junior and minor. Determine the net operating loss (NOL) that is apportioned to the parent.

Answer 1

To determine the net operating loss (NOL) apportioned to the parent in a federal consolidated group, combine the taxable income amounts of the junior and minor, and consider applicable deductions or losses.

Step-by-step explanation:

The net operating loss (NOL) apportioned to the parent can be determined by analyzing the taxable income amounts reported by the federal consolidated group.

In order to calculate the NOL, we need to deduct any net operating losses from the taxable income. Since the parent owns all of the stock of both junior and minor, we need to combine their taxable income amounts and apply any applicable deductions or losses. The resulting amount would be the net operating loss apportioned to the parent.