Business, 21.12.2019 01:31 klrm9792

Cannoli corp. is the parent of its subsidiary, carac corp., and the corporations have filed consolidated tax returns since year 3. in year 4 carac sells to cannoli land worth $90,000 (basis $50,000) at a selling price of $90,000. in year 6 cannoli sells the land to an unrelated third party for $120,000, its fair market value at that time. what amount of gain is recognized on cannoli and carac’s year 4 and year 6 consolidated tax returns, respectively? year 4 year 6 a) $0 $30,000 b) $40,000 $30,000 c) $90,000 $30,000 d) $0 $70,000

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