hediatel Whaleco acquired all of the common stock of MinnowCo early in year 1 for $900,000, and MinnowCo WhaleCo's consolidated Federal income tax return. As part of the takeover, WhaleCo also acquired $300,000 of MinnowCo bonds. Th results of MinnowCo for the first few years of the group operations were reported as follows: Determine WhaleCo's basis in its MinnowCo common stock and the excess loss account as of the end of each tax year. If an amount is zero, enter "0". Tax Year 1 2 3 Operating Gain or Loss $100,000 (800,000) (600,000) Stock Basis 1,000,000 ✓ 2,000,000 X 0 $ Excess Loss 1,000,000 X 200,000 X 0 X

hediatel Whaleco acquired all of the common stock of MinnowCo early in year 1 for $900,000, and MinnowCo WhaleCo's consolidated Federal income tax return. As part of the takeover, WhaleCo also acquired $300,000 of MinnowCo bonds. Th results of MinnowCo for the first few years of the group operations were reported as follows: Determine WhaleCo's basis in its MinnowCo common stock and the excess loss account as of the end of each tax year. If an amount is zero, enter "0". Tax Year 1 2 3 Operating Gain or Loss $100,000 (800,000) (600,000) Stock Basis 1,000,000 ✓ 2,000,000 X 0 $ Excess Loss 1,000,000 X 200,000 X 0 X

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter8: Consolidated Tax Returns

Section: Chapter Questions

Problem 36P

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