In 2008 subco generated an operating loss of 350000 and in, Ask an Expert

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ParentCo acquired all of the stock of SubCo on January 1, 2007, for $1,000,000. The parties immediately elected to file consolidated tax returns. SubCo generated taxable income of $50,000 for 2007 and paid a dividend of $75,000 to ParentCo. In 2008, SubCo generated an operating loss of $350,000, and in 2009 produced taxable income of $65,000. As of the last day of 2009, what was ParentCo's basis in the stock of SubCo?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M991505

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