Table Corp (a publicly traded US corporation) owns 85% of the shares of Chair Co

Question

Table Corp (a publicly traded US corporation) owns 85% of the shares of Chair Corp and Table owns 25% of the shares of Sofa Inc. Chair Corp owns 100% of the shares of Lamp Inc and Lamp, in turn, owns 30% of the shares of Sofa Inc.. All of these corporations are domestic US corporations. Which corporations constitute an affiliated group eligible to file a consolidated tax return?

Table & Chair

Table, Chair, Sofa, & Lamp

Table, Sofa, & Chair

Table, Chair, & Lamp

Table & Chair

Table, Chair, Sofa, & Lamp

Table, Sofa, & Chair

Table, Chair, & Lamp

Explanation / Answer

Solution: Table & Chair

Explanation: Since Table Corp owns more than 80% of the stock of Chair Corp and Chair Corp owns 100% of the shares of Lamp Inc therefore, satisfies the direct ownership requirement

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.