1. The stock of Delaney Corporation is 70% owned by Richard and 30% owned by Richard's sister, Kristin. During 2017, Kristin transferred property (basis of $100,000 and FMV of $120,000) as a contribution to the capital of Delaney. During May 2017, Delaney adopted a plan of liquidation and subsequently made a pro rata distribution of the property back to Richard and Kristin. At the time of the liquidation, the property had an FMV of $80,000. What amount of loss can be recognized by Delaney on the distribution of property? A) $0 B) $30,000 C) $45,000 D) $100,000

2. Breezy Corporation is owned 75% by Leticia and 25% by LaShawn. Breezy Corporation owns Cloud Corporation stock with a $45,000 adjusted basis and a $25,000 FMV. The stock is not a disqualified property. As part of a complete liquidation, the Cloud Corporation stock is distributed to LaShawn. LaShawn's basis in her Breezy stock is $35,000. Breezy Corporation will recognize A) none of the above. B) a $15,000 loss. C) a $25,000 gain. D) no loss.

3. Prisha and Ryia Corporations have filed consolidated tax returns for several calendar years. At the close of business on September 30, Prisha Corporation sells all of the Riya Corporation stock. What portion of Prisha's and Riya's income for the current year will be included in the consolidated return, assuming its income is earned evenly throughout the year and all months have 30 days? A) Prisha Riya 100% 100% B) Prisha Riya 75% 100% C) Prisha Riya 100% 75% D) none of the above

4. Santana Corporation and Andrei Corporation file consolidated returns. In January 2017, Santana sold Andrei Land with a basis of $100,000 for its fair value of $125,000. Andrei sold the property to an unrelated party in April 2018 for $175,000. What amount of gain should be reported for these transactions in the consolidated returns for 2017 and 2018?

5. Bonnie and Clyde Corporations have filed consolidated returns for several calendar years. Bonnie acquires land for $75,000 on January 1 of last year. On August 1 of this year, Bonnie sells the land to Clyde for $100,000. The basis and holding period for the land acquired by Clyde are?

6. Mohammed Corporation and Ali Corporation, an affiliated group, reports the following results for the current year:

Corporation Ordinary Income STCG/STCL LTCG/LTCL Mohammed $15,000 $8,000 ($ 6,000) Ali 20,000 (9,000) 12,000 What is the affiliated group's consolidated regular tax liability? A) $4,000 B) $6,000 C) $6,500 D) $7,000

7. Parent and Subsidiary Corporations form an affiliated group. Last year, the initial year of operation, Parent and Subsidiary filed separate returns. This year the group files a consolidated return. Taxable Income Last Current Parent ($15,000) $25,000 Subsidiary 12,000 (27,000)

How much of the Subsidiary loss can be carried back to last year? A) $0 B) $1,000 C) $2,000 D) none of the above