10. Google Corporation owns 85% of the single class of Yahoo Corporation stock. Yahoo Corporation owns...

10. Google Corporation owns 85% of the single class of Yahoo Corporation stock. Yahoo Corporation owns 35% of Twitter Corporation. Google Corporation also owns 50% of Twitter Corporation, and Twitter Corporation owns 75% of Facebook Corporation.

A) Google, Twitter, Yahoo, and Facebook Corporations are an affiliated group.

B) Google, Twitter, and Facebook Corporations are an affiliated group.

C) Google, Twitter, and Yahoo Corporations are an affiliated group.

D) None of the above are correct.

Expert Solution

ANSWER- (C)

EXPLANATION :

An Affiliated group is two or more corporations which are related through common ownership

but are privileged to file a consolidated tax return.

An Affiliated group consists of a parent corporations and one or more subsidiary corporations.

The Parent corporations must own stock representing at least 80% of the voting power and the

value of the subsidiary.

In the given scenario as Google corporation owns more than 80% (i.e.85%) of the stock of Yahoo corporation thus both Google corporation and Yahoo corporation form an affiliated group .

And both Google corporation and Yahoo corporation are combinedly possess more than 80% of the stock of Twitter corporation (i.e.50%+35% = 85%). So Twitter corporation also form part of the affiliated group.

But the Facebook corporation stands failed to form part of the affiliated group because the parent organisation along with it's subsidiaries i.e. Google along with Yahoo and Twitter are failed to own 80% of the Facebook as they are managed to own only 75% of the stock of the Facebook.

Thus Google,Twitter and Yahoo corporations form an affiliated group

ekkarill92 answered 1 month ago

Moss Corporation has a single class of common stock outstanding. Tanya owns 1,000 shares, which she...

Moss Corporation has a single class of common stock outstanding. Tanya owns 1,000 shares, which she purchased five years ago for $170,000. Moss declares a stock dividend payable in 8% preferred stock having a $230 par value. Each shareholder receives one share of preferred stock for ten shares of common stock. On the distribution date—December 16 of the current year—the common stock was worth $437 per share, and the preferred stock was worth $230 per share. On April 1 of...

Floral Corporation has a single class of common stock outstanding. Tammy owns 1,000 ?shares, which she...

Floral Corporation has a single class of common stock outstanding. Tammy owns 1,000 ?shares, which she purchased in 20112011 for $160,000. Floral declares a stock dividend payable in 8?% preferred stock having a $230 par value. Each shareholder receives oneone share of preferred stock for tenten shares of common stock. On the distribution date—December ?10, 2015—the common stock was worth $437 per? share, and the preferred stock was worth $230 per share. On April? 1, 2015?, Tammy sells halfhalf of...

Use Bloomberg or Google Finance or Yahoo Finance, etc. generate a 10-year (Feb 1, 2009 to...

Use Bloomberg or Google Finance or Yahoo Finance, etc. generate a 10-year (Feb 1, 2009 to Feb 1, 2019) stock price comparison chart for Kering and Moet Hennessy Louis Vuitton SA (LVMH). (a) whose performance is higher over the whole period (b) whose is higher in the last five years (c) the periods during which their performance was tightly-coupled and (d) the point at which performance decouples. Finally, can you point to any specific strategic actions by Kering that might...

P Corporation is a publicly held corporation which owns 10% of S Corporation’s stock. S Corporation...

P Corporation is a publicly held corporation which owns 10% of S Corporation’s stock. S Corporation has taxable income of $100,000 and distributes a $50,000 dividend to P. P has taxable income of $1,000,000 before the dividend. a. P’s corporate income tax is $345,100 on $1,015,000 of taxable income. S Corporation tax is $22,250 b. P’s corporate income tax is $345,100 and S’s corporate income tax is $34,000. c. P Corporation owes AMT. d. None of the above ***Explain answer.

Zeus S.A. is a Swiss corporation that has 1,000 shares of a single class of stock...

Zeus S.A. is a Swiss corporation that has 1,000 shares of a single class of stock outstanding, of which 460 shares are owned by Jupiter Corp., a widely held U.S. corporation, and the remaining 540 shares are owned in equal amounts (i.e., 90 shares each) by 6 individuals who are U.S. citizens and who are not related to one another by family or business relationships. (a) Is Zeus a controlled foreign corporation? (b) If the facts are the same as...

Assume that our class owns corporation A and further that we control all issued stock. We...

Assume that our class owns corporation A and further that we control all issued stock. We need capital for expansion; however, we are unable to make additional contributions. Do you recommend that we issue stock to new investors or obtain debt financing through the sale of bonds? Explain your answer. What are the benefits and drawbacks of each approach?

The company the team chose is Alphabet formally Google, and competitor is Yahoo You are a...

The company the team chose is Alphabet formally Google, and competitor is Yahoo You are a senior manager for the highly successful regional CPA firm of Fine, Dee, Evah, Dense, LLP (Fine). Since its inception nearly 30 years ago, Fine's audit practice has exclusively consisted of auditing private and not-for-profit organizations. Recently, the partners have been considering an opportunity to audit a publically-traded company for the company your team has selected. The primary reason Fine has not heretofore ventured into...

Aurora Corporation exchanges $700,000 of its voting stock for all of Theda Corporation’s single class of...

Aurora Corporation exchanges $700,000 of its voting stock for all of Theda Corporation’s single class of stock owned entirely by Kyle. Kyle’s basis in his Theda stock was $400,000. (1) Does this exchange satisfy the requirements for a Type B reorganization? In your answer, discuss the requirements for a Type B reorganization and whether they are satisfied in this case. (2) What gain, if any, do Aurora and Kyle recognize on the exchange? (3) What is Kyle’s basis in his...

Maureen owns all of the stock in Green Corporation. Green owns 10,000 shares of Micro Corporation,...

Maureen owns all of the stock in Green Corporation. Green owns 10,000 shares of Micro Corporation, whose value has increased by 1000% since they were purchased eight years ago. Maureen would like to have the shares distributed to her, but she wants to avoid the tax bill that would result if they were distributed as a dividend from Green Corporation. Her son, who is taking classes for his MBA, has suggested that she create Brown Corporation with herself as the...

While the flow of information has increased around the world, firms, such as Google and Yahoo!,...

While the flow of information has increased around the world, firms, such as Google and Yahoo!, still must compromise on what information they will provide to their customers if they are to have access to markets such as China’s. Do you think this is an appropriate compromise or not? Please respond in 250 words or more

Question