Tax Drill $-$ Affiliated Groups

Complete the following statements regarding affiliated groups.

An affiliated group exists when one corporation owns at least

$30$ percent$50$ percent$80$ percent

of the voting power and stock value of another corporation. This stock ownership test must be met

only on the last dayfor the majority of dayson every day

of the tax year. The stock attribution rules applied in meeting the controlled group stock ownership test

areare not

required for the affiliated group definition. In an affiliated group,

each affiliated memberthe identifiable parent corporation

must meet the stock ownership test.