Accounting Assignment 2 (Steve Jobs)

excel_template_assignment.xlsx

Q1

A-Corp owns 100% of B-Corp and C-Corp. A-Corp sells its C-Corp stock to D-Corp during 2014. All letters refer to domestic corporations that own one class of stock and are includable.
Please write your solution in the yellow areas below the question. Perform any support calculations to the right of the yellow areas.
a	Does A-Corp's sale of it's C-Corp stock end the affiliated group?
b	Does C-Corp have to file a consolidated return with D-Corp?
c	If A-Corp repurchases the C-Corp stock that it previously sold to D-Corp in 2017, would C-Corp have to file a consolidated return with A-Corp and D-Corp?

Explain why each case is or is not an affiliated group. All letters refer to domestic corporations that own one class of stock and are includable.
Please write your solution in the yellow areas below the question. Perform any support calculations to the right of the yellow areas.
a	B owns 100% of C and D. D owns 100% of E. D and E are French corporations.
b	B owns 100% of C and D. D owns 100% of E. E is a French corporation.
c	You own 100% of A and 30% of B. B owns 70% of A.