TCP

Question 1

In order to have a readily determinable value, must meet these 4 qualifications:

1. Option is transferable
2. Option is exercisable immediately in full when it is granted.
3. There are no conditions or restrictions that would have a significant effect on the value.
4. The fair value of the option privilege can be readily determined.

Question 2

Who cant file a consolidated return?

FIRES
F- Foreign Corporations
I- Insurance Companies
R- Real Estate Investment Trusts
E- Tax Exempt Organizations
S- S Corps

Must file form 1122

Question 3

5 Steps for Consolidated Income Tax Calc

1. Calculate each entity separately
2. Adjustments for inter-company transactions/dividends
3. Gains/Losses/Deductions
4. Combine taxable income
5. Adjustments (according to step 3)