#11

If a consolidated group does not elect a tax allocation method in its first tax return under Section 1552, what is the default method?

Group of answer choices

None of the above an election is not necessary

Percentage method

Contribution of consolidated income method

Separate return tax liability method

Wait and see method

#12

P has the following items during the tax year: taxable income of $100, tax-exempt income of $50, non-deductible, non-capital expenses of $20 and a distribution it received from its wholly-owned subsidiary (S which joins in filing in the same consolidated group as P) of $75. What is Ps E&P for the tax year?

Group of answer choices

$100

$150

$240

$170

$130

#13

P files a stand-alone tax return and generates the following items during the tax year: loss of $100; tax exempt income of $50. What is Ps E&P?

Group of answer choices

Negative $50

$50

$150

$0

$100

#14

P, S and T join in filing a consolidated tax return. On a stand-alone basis, P generates taxable income of $100, S generates taxable income of $300 and T generates a loss of $200. The federal income tax liability for the P, S and T group is $70. Assume that the contribution of consolidated income method is used under Section 1552(a)(1). What amount of the tax liability is attributable to T (rounded to the tenths)?

Group of answer choices

$23.3

Negative $70

$0

#15

P, S and T join in filing a consolidated tax return. On a stand-alone basis, P generates taxable income of $100, S generates taxable income of $300 and T generates a loss of $200. The federal income tax liability for the P, S and T group is $70. Assume that the contribution of consolidated income method is used under Section 1552(a)(1). What amount of the tax liability is attributable to S (rounded to the tenths)?

Group of answer choices

None of the above

$52.5

$35

$0

$23.3