42. Bay's separate taxable income was $250,000, and Lemon's was $140,000. Consolidated taxable income before contributions was $350,000. Charitable contributions made by the affiliated group included $11,000 by Bay and $12,000 by Lemon. Which is the group's charitable contribution deduction?

a)$39,000

b)$35,000

c)$23,000

d)$0

e)None of the above

43. Which of the following statements is true concerning all types of tax-free corporate reorganizations?

a.Assets are transferred from one corporation to another.

b.Stock is exchanged with shareholders.

c.Liabilities that are assumed when cash is also used as consideration will be treated as boot.

d.Corporations and shareholders involved in the reorganization will recognize gains but not losses.

e.None of the above statements is true.

45.The right to file on a consolidated basis is available to a group of corporations when they constitute a "parent subsidiary affiliated group." TRUE/FALSE

46.The Federal income tax treatment of a corporate restructuring is an extension of allowing entities to form without taxation. TRUE/FALSE