Full download Prentice Halls Federal Taxation 2014 Comprehensive 27th Edition Rupert Test Bank all chapter 2024 pdf

Prentice Halls Federal Taxation 2014
Comprehensive 27th Edition Rupert

Test Bank
Go to download the full and correct content document:
https://testbankfan.com/product/prentice-halls-federal-taxation-2014-comprehensive-2
7th-edition-rupert-test-bank/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
Prentice Halls Federal Taxation 2014 Comprehensive 27th

Edition Rupert Solutions Manual
https://testbankfan.com/product/prentice-halls-federal-
taxation-2014-comprehensive-27th-edition-rupert-solutions-manual/
Prentice Halls Federal Taxation 2014 Individuals 27th

Edition Rupert Test Bank
taxation-2014-individuals-27th-edition-rupert-test-bank/
Prentice Halls Federal Taxation 2014 Individuals 27th

Edition Rupert Solutions Manual
taxation-2014-individuals-27th-edition-rupert-solutions-manual/
Prentice Halls Federal Taxation 2014 Corporations

Partnerships Estates and Trusts 27th Edition Anderson
Test Bank
taxation-2014-corporations-partnerships-estates-and-trusts-27th-
edition-anderson-test-bank/
Prentice Halls Federal Taxation 2014 Corporations
Partnerships Estates and Trusts 27th Edition Anderson
Solutions Manual
taxation-2014-corporations-partnerships-estates-and-trusts-27th-
edition-anderson-solutions-manual/

Edition Pope Test Bank
taxation-2015-comprehensive-28th-edition-pope-test-bank/



Edition Pope Solutions Manual
taxation-2013-comprehensive-26th-edition-pope-solutions-manual/
Prentice Hall's Federal Taxation 2014 Corporations, 27e
Chapter C8 Consolidated Tax Returns
1) To be an affiliated group, the parent corporation must directly own at least 80% of another group
member.
Answer: TRUE
Page Ref.: C:8-2
Objective: 1
2) A Canadian subsidiary cannot file as part of the consolidated group with its U.S. parent.
Answer: FALSE
Page Ref.: C:8-5 through C:8-6
Objective: 1
3) Brother-sister controlled groups can elect to file a consolidated tax return.

Answer: FALSE
Page Ref.: C:8-4
Objective: 1
4) An advantage of filing a consolidated return is that losses of one affiliated group member may be offset
against the taxable income of other group members in the same tax year.
Answer: TRUE
Page Ref.: C:8-36
Objective: 8
5) The election to file a consolidated return is made annually.

Answer: FALSE
Page Ref.: C:8-5
Objective: 2
6) A separate return year is a corporation's tax year for which it files a separate tax return or files a
consolidated tax return with another affiliated group.
Answer: TRUE
Page Ref.: C:8-5
Objective: 2
7) P and S are members of an affiliated group that has filed consolidated tax returns for a number of
years. The sale of inventory by P that was acquired from S in an intercompany transaction outside the
affiliated group triggers the recognition of gain by S.
Answer: TRUE
Page Ref.: C:8-18
Objective: 2
8) Intercompany dividends and undistributed subsidiary earnings do not create temporary differences
for affiliated companies filing a consolidated return.
Answer: TRUE
Page Ref.: C:8-21
Objective: 4
1
Copyright © 2014 Pearson Education, Inc.
9) A member's portion of a consolidated NOL may be carried back against that member's taxable income
from the preceding two separate return years.
Answer: TRUE
Page Ref.: C:8-30
Objective: 6
10) The treatment of capital loss carrybacks and carryovers is similar to NOLs.
Answer: TRUE
Page Ref.: C:8-28
Objective: 5
11) The IRS can attempt to collect taxes owed on a consolidated return from any of the members of the
consolidated group.
Answer: TRUE
Page Ref.: C:8-39
Objective: 9
12) Intercompany sales between members of an affiliated group filing separate returns cause deferred tax
assets to be recognized by both buyer and seller.
Answer: FALSE
Page Ref.: C:8-10
Objective: 4
13) Identify which of the following statements is true.

A) To be part of an affiliated group, a corporation must be at least 80% directly owned by another group
member.
B) Only common stock is considered when determining if the 80% ownership test is met for affiliated
group eligibility.
C) An affiliated group electing to file a consolidated return may be composed of as few as two
corporations.
D) All of the above are false.
Answer: C
Page Ref.: C:8-2 and C:8-3
Objective: 1
14) Which of the following corporations is an includible corporation for purposes of filing a consolidated
tax return?
A) insurance companies
B) S corporations
C) car manufacturing corporation
D) foreign corporations
Answer: C
Page Ref.: C:8-3
Objective: 1
2
15) Diana Corporation owns stock of Tomika Corporation. For Diana and Tomika to qualify for the filing
of consolidated returns, at least what percentage of Tomika's total voting power and total value of stock
must be directly owned by Diana?
A)
Total voting power Total Value of stock
51% 51%
B)
51% 80%
C)
80% 51%
D)
80% 80%
Answer: D
Page Ref.: C:8-3
Objective: 1
16) Ajak Corporation owns 85% of the single class of Utech Corporation stock. Utech Corporation owns
35% of Tech Corporation. Ajak Corporation also owns 50% of Tech Corporation, and Tech Corporation
owns 75% of Baxter Corporation.
A) Ajak, Tech, Utech, and Baxter Corporations are an affiliated group.
B) Ajak, Tech, and Baxter Corporations are an affiliated group.
C) Ajak, Tech, and Utech Corporations are an affiliated group.
D) None of the above are correct.
Answer: C
Page Ref.: C:8-3
Objective: 1
17) Which of the following corporations is entitled to join in a consolidated tax return without making a
special election?
A) corporations exempt from tax under Sec. 501
B) real estate investment trusts
C) closely held corporations
D) foreign corporations
Answer: C
Page Ref.: C:8-3
Objective: 1
3
A) If 100% of the stock of two corporations is owned by the same individual, the two corporations are
eligible to file a consolidated return.
B) The check-the-box regulations permit partnership and LLCs to elect C corporation tax treatment.
C) A group of corporations that meets the parent-subsidiary controlled group requirements is always
eligible to file a consolidated return.
Answer: B
Page Ref.: C:8-4
Objective: 1

A) When a new corporation joins an affiliated group, all of its income and expense items for the tax year,
including the acquisition date, must be allocated between the separate tax return and consolidated tax
return that are to be filed based on the number of days included in each of the two tax years.
B) A consolidated return election may be revoked after 5 years.
C) All members of a consolidated group must use the same tax year.
Answer: C
Objective: 3

A) Corporations that join in a consolidated return must adopt the same tax year as the parent corporation.
B) Permission to discontinue the filing of consolidated tax returns is sometimes granted by the IRS.
C) Additional administrative costs may be incurred when filing a consolidated tax return.
D) All of the above are true.
Answer: D
Objective: 2

A) A corporation may be required to file a separate return and file with an affiliated group in the same
calendar year.
B) When a corporation joins in filing a consolidated return, taxable income of the member is combined
with other members' taxable income prior to any adjustments.
C) If a corporation becomes a member of an affiliated group within the first thirty days of the
corporation's tax year, the corporation can elect not to file a short-period tax return.
Answer: A
Objective: 3
4
22) Cardinal and Bluebird Corporations both use a calendar year as their tax year. At the close of business
on June 30, Cardinal Corporation buys all of Bluebird Corporation's stock. If the two corporations file a
consolidated return and both corporations earn their income evenly throughout the year, what portion of
Cardinal's income will be included in the consolidated return? (Assume all months have 30 days.)
A) 100%
B) 50%
C) 0%
D) none of the above
Answer: A
Page Ref.: C:8-5; Example C:8-6
Objective: 2
23) Cardinal and Bluebird Corporations both use a calendar year as their tax year. At the close of business
on June 30, Cardinal Corporation buys all of Bluebird Corporation's stock. If the two corporations file a
consolidated return and both corporations earn their income evenly throughout the year, what portion of
Bluebird's income will be included in the consolidated return? (Assume all months have 30 days.)
A) 100%
B) 50%
C) 0%
Answer: B
Objective: 2
24) Parent Corporation owns all of the stock of Richards and Smith Corporations on January 1. The three
corporations have filed consolidated tax returns for a number of calendar years. Parent sells all of the
stock of Richards Corporation on June 1. Parent purchases all of the stock of Taylor Corporation on
September 1. Parent sells all of the stock of Smith Corporation on November 1. When does the affiliated
group terminate?
A) June 1
B) September 1
C) November 1
D) The original affiliated group does not terminate.
Answer: D
Page Ref.: C:8-5
Objective: 2
5
25) Alto and Bass Corporations have filed consolidated tax returns for several calendar years. At the close
of business on September 30, Alto Corporation sells all of the Bass Corporation stock. What portion of
Alto's and Bass's income for the current year will be included in the consolidated return, assuming its
income is earned evenly throughout the year and all months have 30 days?
A)
Alto Bass
100% 100%
B)
Alto Bass
100% 75%
C)
Alto Bass
75% 75%

Answer: B
Page Ref.: C:8-5
Objective: 2
26) Which of the following statements is incorrect with respect to the consolidated alternative minimum
tax?
A) The starting point for the consolidated alternative minimum taxable income computation is
consolidated taxable income before the NOL deduction.
B) The difference between the consolidated ACE amount and the consolidated preadjustment AMTI is an
adjustment to consolidated taxable income in arriving at AMTI.
C) Each corporation is permitted its own $40,000 statutory exemption.
D) If the consolidated tentative minimum tax is smaller than the consolidated regular tax, there is no
alternative minimum tax liability.
Answer: C
Page Ref.: C:8-24
Objective: 5

A) The corporate AMT is determined on a separate return basis and then consolidated.
B) All corporations filing consolidated tax returns are subject to the AMT.
C) Alternative minimum tax payments from prior consolidated return years that are attributable to
timing or permanent differences can be carried over by the affiliated group and claimed as a credit on
current or future consolidated returns.
Answer: C
Page Ref.: C:8-24
Objective: 5
6
28) Which of the following statements is incorrect with respect to the consolidated alternative minimum
tax?
A) A separate alternative minimum taxable income computation is made for each individual group
member. These amounts are then totaled to arrive at consolidated alternative minimum taxable income.
B) Positive adjustments that are made with respect to one group member can be offset by negative
adjustments that are made with respect to another group member in computing consolidated alternative
minimum taxable income.
C) The affiliated group's alternative minimum tax payment is available as a credit against its regular tax
amount in future tax years.
D) The estimated tax payment rules apply to the alternative minimum tax.
Answer: A
Page Ref.: C:8-24
Objective: 5
29) Which of the following statements is true?

A) A consolidated group determines its general business credit on a consolidated basis.
B) The general business credit can be carried back 3 years and forward 15 years.
C) The general business credit can be carried forward indefinitely.
D) The general business credit can not be carried forward or backward.
Answer: A
Page Ref.: C:8-25
Objective: 5
30) The Alpha-Beta affiliated group has a consolidated regular tax amount of $52,000 and a tentative
minimum tax amount of $50,000 in the current year. The maximum general business credit that can be
used on the consolidated return is
A) $2,000.
B) $6,750.
C) $50,000.
Answer: A
Explanation: A) The general business credit that can be used equals the group's net income tax ($52,000)
minus the larger of (1) tentative minimum tax ($50,000), or (2) 25% of net income tax in excess of $25,000
($6,750) or $2,000 ($52,000 - $50,000).
Objective: 5
31) Identify which of the following statements is false.

A) A corresponding item includes the income, gain, deduction, or loss amount reported by the buyer
from an intercompany transaction, or from property acquired in an intercompany transaction.
B) Affiliated groups of corporations filing a consolidated tax return are not eligible for the small
corporation exemption from the corporate alternative minimum tax.
C) An intercompany transaction generally results in the selling member and buying member in a
property transaction being treated as divisions of a single corporation.
D) Intercompany dividends and undistributed subsidiary earnings do not create temporary differences
for affiliated companies filing a consolidated return.
Answer: B
Page Ref.: C:8-24
Objective: 5
7
A) Unused general business credit carryforwards, which originate in a consolidated return year, are
absorbed in a FIFO manner, beginning with the earliest ending tax year.
B) An intercompany transaction is a transaction that takes place between two corporations that are
members of the same affiliated group immediately after the transaction.
C) An intercompany item includes income reported by the seller on the providing of services by one
group member to another group member and the gain/loss reported by the seller on the sale of property
to another group member.
Answer: C
Objective: 4
33) Ajax and Brindel Corporations have filed consolidated returns for several calendar years. Ajax
acquires land for $60,000 on January 1 of last year. On September 1 of this year, Ajax sells the land to
Brindel for $90,000. The basis and holding period for the land acquired by Brindel are:
A)
Basis Holding Period Begins On
$60,000 January 2 of last year
B)
$90,000 January 2 of last year
C)
$90,000 September 2 of this year

Answer: C
Page Ref.: C:8-10
Objective: 4
34) Which of the following events is an intercompany transaction?

A) a capital contribution
B) accrual of interest on a loan made by one group member to another group member; both group
members use the accrual method of accounting
C) dividend payment received from a subsidiary corporation to its parent corporation; the subsidiary
corporation is not an includible corporation
D) a parent corporation's sale of stock of a subsidiary corporation to a nonmember of the group
Answer: B
Page Ref.: C:8-10
Objective: 5
8
35) Subsidiary Corporation purchases a used machine from Parent Corporation in an intercompany
transaction. Which of the following events is a corresponding event for the intercompany transaction?
A) the purchasing group member depreciating the machine
B) the purchasing group member selling the machine for cash to a nonmember of the group
C) the departure of the purchasing group member from the affiliated group when its stock is sold to a
nonmember of the group
D) All of the above are recognition events.
Answer: D
Objective: 4
36) Which of the following events is an intercompany transaction that requires the deferral and later
recognition of income?
A) accrual of rentals on a lease of real property owned by one group member that is used by another
group member; both group members use the accrual method of accounting
B) cash dividend payment from a subsidiary corporation to its parent corporation
C) sale of inventory from a subsidiary corporation to its parent corporation
D) None of the above transactions require the deferral and later recognition of income.
Answer: C
Page Ref.: C:8-9
Objective: 4

A) Inventory sales between group members are an example of an intercompany transaction.
B) The basis to the purchasing member of property acquired in an intercompany transaction is the
amount of cash paid to the selling member.
C) The holding period for property acquired in an intercompany transaction begins when the
corresponding item is reported.
D) In general, buyers and sellers engaging in an intercompany transaction are treated as separate entities.
Answer: C
Objective: 4

A) The basic accounting method elections that are used by the seller in intercompany transactions do not
override the intercompany transaction rules.
B) P and S are members of an affiliated group that has filed consolidated tax returns for a number of
years. The sale of inventory by P, which was acquired from S in an intercompany transaction, outside the
affiliated group triggers the restoration of gain by S.
C) Last year, P, S, and T Corporations have filed consolidated tax returns for a number of years. Last year
P Corporation sold land (a Sec. 1231 asset) to T at a $75,000 profit. The gain was deferred by P in last
year's consolidated tax return. P sold the T stock to Mike on June 1 of this year. The stock sale will require
P to report in its income the gain that was deferred on the land sale.
Answer: D
Objective: 3
9
39) Parent Corporation sells land (a capital asset) to Subsidiary Corporation in an intercompany
transaction, realizing a $25,000 gain. Subsidiary uses the land for five years in its trade or business before
selling the land to a nonmember of the group in a cash sale in which a $50,000 gain is realized. Which
statement is correct?
A) A $25,000 capital gain is included in consolidated taxable income when Parent sells the land to
Subsidiary Corporation. A $50,000 Sec. 1231 gain is included in consolidated taxable income when
Subsidiary sells the land.
B) A $25,000 capital gain and a $50,000 Sec. 1231 gain are included in consolidated taxable income when
C) A $75,000 Sec. 1231 gain ($25,000 from Parent and $50,000 from Subsidiary) is included in consolidated
taxable income in the year Subsidiary sells the land (assuming no recapture of previously deducted Sec.
1231 losses must occur).
D) None of the above are correct.
Answer: C
Explanation: C) The recomputed gain is $75,000 of Sec. 1231 gain. $50,000 of gain is reported by
Subsidiary. $25,000 is reported by Parent. Both Sec. 1231 gains are reported in the year of Subsidiary's
sale. The $25,000 amount reported by Parent is a restoration that reflects the fact that $25,000 was
included in Parent's separate taxable income in the year of the original sale to Subsidiary, which was
deferred when determining the group's consolidated taxable income.
Page Ref.: C:8-12
Objective: 4
40) Apple Corporation and Banana Corporation file consolidated returns. In January 2007, Apple sold
Banana property with a basis of $120,000 for its fair value of $150,000. Banana sold the property to an
unrelated party in April 2008 for $200,000. What amount of gain should be reported for these transactions
in the consolidated returns for 2011 and 2012?
A)
2007 2008
$30,000 $50,000
B)
2007 2008
$0 $50,000
C)
2007 2008
$30,000 $80,000
D)
2007 2008
$0 $80,000
Answer: D
Page Ref.: C:8-12
Objective: 4
10
41) Parent Corporation sells land (a capital asset) to Subsidiary Corporation in an intercompany
transaction, recognizing a $25,000 gain. Subsidiary holds the land as an investment for five years before
selling the land to a nonmember of the group on an installment basis in a sale in which a $50,000 gain is
realized. The sales proceeds are collectible in four equal installments with an appropriate interest amount
being charged to the purchaser. Which statement is correct?
A) A $25,000 capital gain is included in consolidated taxable income when Parent sells the land to
Subsidiary Corporation. A $50,000 capital gain is included in consolidated taxable income when
B) A $25,000 capital gain from Parent and a $50,000 capital gain from Subsidiary are included in
consolidated taxable income when Subsidiary sells the land.
C) The $25,000 capital gain from Parent and $50,000 capital gain from Subsidiary are included ratably in
consolidated taxable income, commencing in the year the first installment is received.
D) None of the above are correct
Answer: D
Explanation: D) The recomputed gain is $75,000 of capital gain. $15,000 ($75,000/5) of the recomputed
gain is recognized as each installment is collected. $10,000 of this gain is reported by Subsidiary and
$5,000 by Parent as each installment is collected. The $25,000 amount reported by Parent is a restoration
that reflects the fact that $25,000 was included in Parent's separate taxable income in the year of the
original sale to Subsidiary, which was deferred when determining the group's consolidated taxable
income.
Objective: 4
42) Parent and Subsidiary Corporations have filed calendar-year consolidated tax returns for several
years. Parent Corporation uses the cash method of accounting while Subsidiary Corporation uses the
accrual method of accounting. If Parent lends Subsidiary money,
A) the interest expense is deductible when accrued.
B) the interest expense and interest income may be reported in different consolidated return years.
C) the interest income is reported when the interest expense is accrued by Subsidiary.
D) the interest expense deduction is taken when Parent reports the interest income.
Answer: C
Objective: 4

A) P Corporation receives a dividend from its 100%-owned subsidiary corporation S. P and S have filed
consolidated tax returns for a number of years. The dividend payment is out of S's earnings and profits
and reduces P's investment in S. The dividend is an intercompany transaction and excluded from P's
gross income.
B) The consolidated dividends-received deduction percentage for dividends received by one affiliated
group member from another affiliated group member is always 100%.
C) The dividends-received deduction claimed when a $50,000 dividend is received from a 100%-owned
nonconsolidated life insurance company is $35,000 (ignoring any dividends-received deduction
limitations).
Answer: A
Page Ref.: C:8-21
Objective: 4
11
A) A shareholder corporation that receives a nondividend distribution from an affiliated group member
is not required to recognize a gain when the distribution amount exceeds the shareholder's basis in the
distributing corporation's stock.
B) The dividends-received deduction limitation for dividends received by members of an affiliated group
from nonmembers is applied to the separate taxable income of each group member.
C) The dividends-received deduction cannot be taken in full on a consolidated return if the deduction
amount creates or increases a consolidated NOL.
Answer: A
Page Ref.: C:8-21
Objective: 4

A) The charitable contribution deduction is calculated on a separate return basis for each group member,
and the separate company deductions of the individual group members are totaled to arrive at the
consolidated deduction.
B) An affiliated group member cannot carry over any unused charitable contribution deduction from a
consolidated return year to a separate return year if the member leaves the group prior to the end of the
current consolidated return year.
C) Charitable contributions, which cannot be deducted in a consolidated return due to the 10% deduction
limitation, can be carried forward indefinitely by the affiliated group.
Answer: D
Page Ref.: C:8-19
Objective: 5

A) The basic dividends-received deduction rules generally do not apply to the calculation of the
consolidated dividends-received deduction.
B) A member of an affiliated group can elect to carry back its own separate return losses from a
consolidated return year to one of its earlier profitable separate return years.
C) A consolidated NOL is computed in part by including the consolidated capital gain in taxable income.
Answer: C
Objective: 6
47) Which of the following intercompany transactions creates temporary book/tax differences when a
parent corporation owns 100% of a subsidiary's stock and the companies file a consolidated return?
A) intercompany dividends
B) undistributed subsidiary earnings
C) intercompany sale
D) None of the above items create temporary differences.
Answer: D
Page Ref.: C:8-39
Objective: 10
12
48) Which of the following statements is true?
A) The definition of an affiliated group is the same for purposes of calculating the U.S. production
activities deduction as it is for filing a consolidated return.
B) The consolidated charitable contributions deduction is limited to 10% of adjusted consolidated taxable
income, without regard to the consolidated DRD, consolidated NOL carrybacks, consolidated capital loss
carrybacks, and consolidated charitable contributions deduction.
C) The definition of an affiliated group for purposes of the U.S. production activities deduction uses a
60% ownership threshold.
D) All of the above are true statements.
Answer: B
Objective: 5
49) Parent and Subsidiary Corporations form an affiliated group. Last year, the initial year of operation,
Parent and Subsidiary filed separate returns. This year, the group files a consolidated tax return. The
results for last year and the current year are:
Taxable Income
Last Current
Parent ($10,000) $50,000
Subsidiary 30,000 (25,000)
How much of Subsidiary's loss can be carried back to last year?

A) $0
B) $20,000
C) $25,000
Answer: A
Objective: 6
50) Parent and Subsidiary Corporations form an affiliated group. Last year, the initial year of operation,
Parent and Subsidiary filed separate returns. This year. the group files a consolidated return.
Taxable Income
Last Current
Parent ($16,000) $20,000
Subsidiary 10,000 (21,000)
How much of the Subsidiary loss can be carried back to last year?
A) $0
B) $1,000
C) $10,000
Answer: B
Objective: 6
13
A) The parent corporation may elect that the affiliated group use its NOL as a carryforward only.
B) A portion of a consolidated NOL can be carried back or forward to a separate return year of an
individual group member.
C) The entire consolidated NOL may be available as a carryback or a carryover to a separate return year
of one of the members of an affiliated group.
Answer: D
Objective: 6
52) Mako and Snufco Corporations are affiliated and have filed consolidated returns for the past three
years. Mako acquired 100% of Zebco stock on January 1 of last year, the date of Zebco's formation. Mako,
Snufco, and Zebco, who have filed consolidated returns for last year and the current year, report the
following taxable incomes.
Taxable Income Taxable Income

Corporation
Last year Current year
Mako $18,000 $ 12,000
Snufco 9,000 8,000
Zebco (25,000) (35,000)
CTI $ 2,000 ($15,000)
The $15,000 consolidated NOL reported in the current year

A) cannot be carried back.
B) can be carried back three years ago only.
C) can be carried back to last year and the remainder, if any, carried forward to subsequent years.
D) can only be used in future years.
Answer: C
Explanation: C) The loss can be used to offset the income of Mako and Snufco.
Objective: 6
14
53) Pants and Skirt Corporations are affiliated and have filed consolidated tax returns for the past three
years. Pants acquires 100% of Zipper stock on January 1 of this year. Zipper Corporation filed separate
returns previously. Pants, Skirt, and Zipper filed a consolidated return for the current year and reported
the following taxable incomes:

Corporation
Pants $18,000 $ 12,000
Skirt 9,000 8,000
Zipper 7,000 (29,000)
CTI $34,000 ($ 9,000)
The $9,000 consolidated NOL reported in the current year

A) can offset taxable income of Pants and Skirt Corporations from last year.
B) can offset Zipper Corporation separate return taxable income only from last year.
C) can be used only as a carryover to the future.
D) can offset Zipper Corporation separate return taxable income from last year and then be carried
forward to offset the affiliated group's subsequent taxable income.
Answer: D
Objective: 6

A) An affiliated group member's allocated share of an NOL from a consolidated return year may not be
available as a carryback to a separate return year of the common parent corporation.
B) If a corporation ceases to be a member of an affiliated group, the corporation is entitled to carry
forward its share of the consolidated NOL even if the NOL could be used in full on the consolidated
return for the year of cessation.
C) The SRLY (separate return limitation year) rules are designed to prevent the affiliated group from
offsetting its current year taxable income by purchasing corporations having NOL carryovers in order to
use their NOLs.
Answer: C
Objective: 6

A) An affiliated group member incurring an NOL in a separate return year that is available as a carryback
or carryforward to a consolidated return year is subject to a limit on the use of the NOL when the loss
year is designated a separate return limitation year (SRLY).
B) A consolidated NOL may be carried back one year and carried forward twenty years.
C) An NOL incurred in a separate return limitation year by the corporation that is the common parent
corporation for the group in the carryover year is subject to the SRLY limitation.
Answer: A
Page Ref.: C:8-30
Objective: 6
15
56) Key and Glass Corporations were organized last year. They became an affiliated group and filed
separate tax returns. This year, the corporations begin filing a consolidated tax return. Key and Glass
report the following results:
Income (loss) Income (loss)

Consolidated
Key ($10,000) $40,000
Glass 30,000 (15,000)
Which of the following statements is not correct?

A) Key's last year NOL cannot offset Glass's last year profits.
B) Key's last year NOL cannot offset this year's consolidated taxable income.
C) Key's current year income must first be offset by Glass's current year loss.
D) Glass cannot carry its current year loss back against last year's income.
Answer: B
Explanation: B) Key can offset its last year NOL against the current year consolidated taxable income
($25,000).
Page Ref.: C:8-30
Objective: 6
57) Jackson and Tanker Corporations are members of an affiliated group. The two corporations have been
affiliated since they were formed last year. Both corporations have always used a calendar year as their
tax year. Tanker, the subsidiary, has a separate return year NOL of $14,000 from last year. Jackson
Corporation has a separate return year NOL of $16,000 from last year. Commencing this year, the two
corporations filed a consolidated tax return. The NOLs can be carried over
A) to a consolidated return year and both are SRLY (separate return limitation year) losses.
B) to a consolidated return year and Tanker's loss is a SRLY loss.
C) to a consolidated return year without limit.
D) to a consolidated return year and Jackson's loss is a SRLY loss.
Answer: C
Explanation: C) Since the corporations were affiliated since inception, the SRLY loss limitation does not
apply.
Page Ref.: C:8-31
Objective: 6

A) A built-in deduction accrues in a separate return year, but is not recognized in a consolidated return
year.
B) Section 382 adopts a single-entity approach in determining ownership changes.
C) The 50-percentage-point minimum stock ownership change that triggers the Sec. 382 loss limitation
rules will not occur in acquisitive transactions involving a group of corporations filing consolidated
returns.
Answer: B
Page Ref.: C:8-33
Objective: 6
16
59) Blue and Gold Corporations are members of the Blue-Gold affiliated group, which filed a
consolidated tax return for last year, reporting a $200,000 consolidated NOL. Small taxable income
amounts were reported by Blue and Gold in separate tax returns filed in years prior to last year. Early in
the current year, 100% of Blue's stock is purchased by Robert Martin who contributes additional funds to
Blue Corporation sufficient to acquire all of Green Corporation's stock. For the current year, the affiliated
group reports the following results (excluding the consolidated NOL deduction):
Corporation Taxable Income

Blue $150,000
Gold ( 25,000)
Green (since acquisition) 100,000
Which of the following statements is correct?

A) Last year's NOL cannot be carried back.
B) The portion of last year's NOL that is not used as a carryback can be carried over the current year but is
only used against Blue's taxable income.
C) The portion of last year's NOL that is not used as a carryback can be carried over against the current
consolidated taxable income, but is subject to the Sec. 382 limitation.
D) The portion of last year's NOL that is not used as a carryback can be carried over, but is used only
against the Blue's and Gold's taxable income.
Answer: C
Objective: 6
60) Mariano owns all of Alpha Corporation, which owns 100% of Beta Corporation's single class of stock.
On January 1, Alpha and Beta Corporations report a consolidated NOL carryover from prior years. What
is the maximum percentage of Alpha Corporation's single class of stock that Mariano can sell to a single
shareholder without triggering the Sec. 382 loss limitation?
A) 0%
B) 50%
C) 75%
D) 80%
Answer: B
Page Ref.: C:8-33
Objective: 6
17
61) Last year, Trix Corporation acquired 100% of Track Corporation. The acquisition occurred on July 1,
which was five months after Track's creation. The corporations filed separate returns that year and have
filed consolidated returns since then. The group results for the years, excluding the NOL deduction, are
shown below.

Corporation
Trix ($12,000) $34,000
Track ( 10,000) ( 2,000)
Consolidated Taxable Income ($22,000) $32,000
Which of the following statements is incorrect?

A) Last year is an SRLY (separate return limitation year) with respect to Track Corporation.
B) Track's last year loss is offset against the consolidated current taxable income.
C) Track's last year loss can be used to offset the current year's consolidated taxable income.
D) None of Track's last year's loss can be used to offset the current year's consolidated taxable income.
Answer: C
Page Ref.: C:8-33
Objective: 6
62) Which of the following is not reported by an affiliated group on a consolidated basis?
A) capital gain
B) section 1231 gain
C) casualty & theft gain
D) All of the above are included.
Answer: D
Page Ref.: C:8-9
Objective: 3

A) Rules for carryforward and carryback of a consolidated net capital loss and a consolidated NOL are
the same with the exception of the carryforward period.
B) Capital loss carrybacks and carryforwards are all treated as short-term capital losses.
C) A member leaving an affiliated group cannot use capital loss carryovers that originated in one of its
previous separate return years.
Answer: B
Page Ref.: C:8-21
Objective: 6
18
64) Blair and Cannon Corporations are the two members of an affiliated group. No prior net Sec. 1231
losses have been reported by any group member. The two corporations report consolidated ordinary
income of $100,000 and gains and losses from property transactions as follows:
Sec. 1231
Corporation STCG/STCL LTCG/LTCL
Gains and Losses
Blair ($5,000) $6,000 $3,000
Cannon 6,000 (7,000) (3,000)
Included in the above totals is $6,000 of long-term capital losses recognized by Cannon on an
intercompany transaction. Excluded from the above is a $4,000 Sec. 1231 gain originally deferred by
Cannon that must be reported by the group in the current year.
Which one of the following statements is incorrect?

A) The consolidated group must report a net long-term capital gain of $9,000 and a net short-term capital
gain of $1,000.
B) Cannon Corporation's separate return reports a $6,000 net long-term capital gain.
C) The affiliated group reports a $4,000 net Sec. 1231 gain.
D) None of the above statements are incorrect.
Answer: B
Explanation: B) Statement A is correct because the group reports a $1,000 net short-term capital gain
[($5,000) + $6,000]. The group reports a $5,000 [($6,000 - $7,000) + $6,000 deferred loss] net long-term
capital gain before taking into account the Sec. 1231 gains and losses. The group reports a $4,000 [$3,000 -
$3,000 + $4,000 restored gain] net Sec. 1231 gain that is taxed as a long-term capital gain. The total is a
$9,000 net long-term capital gain. Statement B is incorrect because Cannon Corporation reports $6,000 of
short-term capital gains, $1,000 of long-term capital losses, and $1,000 of Sec. 1231 gains, or a net $6,000
short-term (and not long-term) capital gain. Statement C is correct because the affiliated group reports a
$4,000 net Sec. 1231 gain ($3,000 from Blair and $1,000 from Cannon after adding in the restored gain).
Objective: 6
19
65) Roland, Shedrick, and Tyrone Corporations formed an affiliated group a number of years ago, which
has since filed consolidated tax returns. No prior Sec 1231 losses have been reported by any group
member. The group had a consolidated capital loss carryover last year. For the current year, the group
reports the following results:
Ordinary Sec. 1231

Income Gains and Losses
Roland $25,000 $4,000 ($ 2,000) ($5,000)
Shedrick 30,000 (2,000) 14,000 ( 2,000)
Tyrone 20,000 (3,000) 8,000 ( 3,000)
Which of following statements is incorrect?

A) No Sec. 1231 recapture can occur this year.
B) The net capital gain is taxed at the regular corporate tax rates.
C) The Sec. 1231 loss is treated as an ordinary loss.
D) The net capital gain is $20,000.
Answer: D
Explanation: D) The net capital gain is $19,000 ($20,000 - $1,000).
Objective: 5
66) Blair and Cannon Corporations are members of an affiliated group. No prior net Sec. 1231 losses have
been reported by any group member. The two corporations report consolidated ordinary income of
$100,000 and gains and losses from property transactions as follows.
Sec. 1231
Gains and Losses
Blair ($5,000) $6,000 $3,000
Cannon 6,000 (7,000) (3,000)
Which of the following statements is correct?

A) The consolidated group reports a net short-term capital gain of $1,000.
B) Blair Corporation's separate return reports a $4,000 net long-term capital gain.
C) Cannon Corporation's separate return reports a $1,000 net long-term capital loss.
D) All three of the above are correct.
Answer: D
Objective: 5
20
Another random document with
no related content on Scribd:
KOTINI NÄKY.
Mikä ääretön sylyys puhdasta, kirkasta ilmaa! Mikä riemu

hengittää sen hopeata rinnan joka sopukkaan! Mikä
huikaiseva kirkkaus aamun paistaissa puihin! Niinkuin oma
sieluni on tuo kuultava ilma. Jokainen värähdys tuntuu siinä,
jokainen lyönti siinä kaikuna kiirii, jokainen sävel kauan
helisee.
Jokainen kukkula, puu ja pensas kuvastaa sen läpi. Tuolla

on koti! Sen sininen sauhu kiemuroi ilmaan, siellä äidin askar
ja askel, polkema polku. Siellä isän kyntämä pelto ja kylvämä
vilja. Kaikki siellä on kääriytynyt hiljaiseen hymyyn. Katoilla ja
nurkanpäissä kiipeilee hillitty nauru.
METSÄN KAIKU.
Olen kaiho mä kansani kalliin, hely häipyvä kantelen. Käki

kerran mun kuusesta keksi niin kilpaan kiihottaen.
Olen huilu mä korvesta kaukaa,

minä paimenten tulilta tuun,
soi loiluni leimua lemmen
ja hilkettä jäisen puun.
Olen henki, mi hankiin hukkuu,

joka honkien hoviin jää,
joka tuulien laulussa itkee
ja viidassa viheltää.
Olen helkettä heimoni hengen, suvun sorjan, mi soitintaan

ei tuonelan tuville vienyt eikä lauluja lapsiltaan.
PELKO.
Se kyyristyy pensaikkoon.
Sen sydän käpertyy kokoon.
Sen tukka nousee pystyyn.
Sen selkään kaadetaan kylmää vettä.
Sen kuulo on kuin naskalin kärki.
Se näkee olemattomia.
Se kuulee kuulumattomia.
Se kulkee aina sukkasillaan. Toisinaan se pakenee

pimeään, toisinaan se pelkää pimeässä. Sillä on levoton
omatunto. Usein se on Syytön. Se on hyvä juoksija ja aina —
tai useimmiten se juoksee varpaillaan. Se ei koskaan
punnitse asiaa järjen valossa, vaan vapisee kuin kiinniotettu
lintu.
IKÄVÄ.
Ikävä on hämärän sukulainen.

Sillä on usein kyynel! poskella.
Se katsoo aina jonnekin kauas.
Se ei kuuntele niin kuin odotus.
Tuntuu puristusta rinnassa.
Ikävä ahdistaa vain yksinäistä ihmistä.
Joukossa se piiloutuu.
Se ei naura koskaan.
Mutta on nähty sen joskus hymyilevän.
Se vieroo valoa.
Kirkkaana päivänä se painuu varjoon.
Se huokaa usein
ja seisoo myöhään ikkunassa
suven sinisinä öinä.
ODOTUS.
Odotus on kuin pingoitettu kieli.

Kaikki sen ympärillä on kiristettyä.
Puut, puun oksat ja veräjän salot
tuntuvat soivan, jos uskaltaa niitä koskettaa.
Sitä häiritsee kaikki sivuäänet.
Sillä on tuijottava katse.
Se ei naura, mutta hymyilee kalpeasti. —
Sillä on tarkka kuulo,
mutta huono tuntoaisti. —
Se seisoo avojaloin kauan
lumisella kartanolla ja kuuntelee.
Sen tapaa usein kyynärkolkkasillan
akkunassa.
Se pidättää hengitystään.
Kun se kuulee tutut askeleet,
avaa se sylinsä.
Silmissä välkähtää ihana valo
ja huulille hyrähtää lämpöinen hymyily.
HUMALAN LOIHTU.
Lentävät mietteet, metsien puissa tuhannet huilut huminaa

pitää, soutavat kiistaten kielillä sormet, sielussa sävelet syttyy
ja itää.
Sävelet unhossa uinuneet kauan

unien riemuja riehuu ja nauraa.
Kaikilla kunnailla halmeita päilyy,
halmeilla häilyy kultaista kauraa.
Armaita ahoja aurinko kultaa,

haapojen lehdillä leikkivi tuulet.
Tarhalta kiirii naisien nauru,
silkkistä soittoa kukista kuulet.
Rinnassa tunnet sä kiihkeän polton, kuumeinen kaipuusi

kaikkea halaa: syliä naisten, naurua peikkoin… Veresi villinä
tulena palaa.
PÄIVÄNLASKU.
Huurtehen helmaan päivyt pois putoaa taivaalta tammikuun.

Kierivi sylihin kylmän metsän latvasta hohtavan hopeapuun.
Metsien latvoilla kaihoina vielä

kulta sen hämyssä häilähtää.
Kuurainen kuutamo peittävi alleen
hanget ja hongat, akkunat jää.
Kalvavan ikävän sylissä istun.

Haikean mieleni harmaa vyö
peittävi ollehet päivän riemut.
Pakkanen nuijalla nurkkaan lyö.
KEVÄÄSTÄ KESÄÄN
HUHTIKUU.
Ajaa Luojan lumiaurat, kurki kirkuu kuskipuulla. Pärskyy vesi,

räiskyy räntä, huutaa kuikka salmensuulla.
Repii jäitä, rouhii routaa,

pirstoo myrsky metsän puita.
Kosket kiehuu, sillat soutaa
särjettyinä salmensuita.
Vaakkuu vanha, harmaa varis,

varpusparvi kylpee veessä.
Halkopinot pyllähtelee
tielle vanhan riihen eessä.
Mikä säilyi talven yli, nousee, kirpoo kirren alta, laululinnut

livertelee, kiirii kaiut kaikkialta.
HUHTIKUUN TUNNELMA.
Metsä supattaa.
Suon syrjä sipiee.
Hangen hursti hupenee.
Vuorilla solisee vesi hopeisina nauhoina.
Kevät!
Huhtikuu!
Sinisenharmaa, punaisenruskea huhtikuu.
Rinteillä tuhannet haltijat. Kevät on kuin valon jumala

vuorille noussut. Koskena kohisee, tuulena tohisee, myrskynä
mylvii. Huiluna se havukosta huutaa, pajupillinä norolta
piiskuttaa. Tuuhealta mäeltä tuohitorvena tuututtaa. Kylästä
se on metsään juossut, pistänyt jalkamyllyn käyntiin ja katsoo,
nyt jauhonaamaisena nauraa myllyn oviaukosta.
TAKATALVI.
Soitti täällä lintu kesän, laati pesän peippovaari. Kuultiin

kurjet, kuikan huuto, nähtiin kirkas sateenkaari.
Veettiin jalkaan suvisukka,

vietiin vinttiin talvivaatteet.
Jätettihin talven taiat,
etsittihin uudet aatteet.
Nyt on kaikki kauhuissansa —: Linnut värjyy vilusäässä,

tytöt tyrskii karsinassa harmaat talvihuivit päässä.
KEVÄT-YÖ.
Kevät on ympärilläni.
Sen uneton yö.
Sen tuleton valo.
Sen äänetön ilo.
Kosken pauhu vain.
Sen puut valkoisissaan,
sen nurmet kultaisin kukin,
sen kaivonvintti salamyhkäisin ajatuksin.
Sen kulku metsätiellä ja lyhyt laulu.
Keväinen yö!
Se niin kummasti kädestä ottaa.
Ja se rinnassa toiveena soutaa.
Se syömeen niin ihanasti koskee.
Mikä ennen nukkui, valvoo.
Mikä ennen itki, hymyilee.
Mikä ennen suri, iloitsee.
Iloa on ilmassa, iloa maassa, kultia vesillä.
Ajatuskin on kuin uninen polku,
joka juuri saapuu kultaisen linnan ovelle.
KULTAISET HETKET.
Aina kun kevät saapuu polttavin tuntein, tuuin vallattomin,

istun mä tuntehen tulessa iltaisin.
Sinä tulet.
Sinä tulet hiukset täynnä kevään ensimmäisiä
kukkia,
suu naurussa, tanssin tahdissa jalka,
kielellä suloinen sana.
Kuin saituri kokoan jokaisen hetken yhdessäolostamme

muistoni pyhäkköön. Ja kun sinä olet mennyt ylitse kukkivan
maan, ylitse helkkyvän riemun, avaan minä aarteeni, ja
jokainen hetki hyräjää sielustani hiljaisena lauluna.
TOUKOKUU.
Tuli toukokuu, tuli valkeat yöt, tuli pilvihin rikkaat ruskot, tuli
hiirenkorvalle koivikkovyöt, tuli rintahan toivot ja uskot.
Tuli toukokuu, tuli oottavan yöt,

yli lensivät kurkien aurat;
tuli rinteille riemu ja pelloille työt,
nous oraalle ohrat ja kaurat.
Tuli toukokuu, ja paimenet saa

taas torven, kontin ja evään.
Saa soita kiertää ja rallattaa
ja huilulla huikata kevään.
Taas vaari se solmii happaitaan,

on pyykinpesussa akat,
ja isännät penkovat pelloillaan
ja käissä on siemenvakat.
Käy päivillä työ, mut illoin ui

vene nuorien saarihin salaa.
Siellä hanurin povesta polkat soi
ja helkavalkeat palaa.
Tytöt luhdista kaihoten katselee
kevät-iltojen kalvasta kuuta,
joka kuusten kukkia kultailee
ja rastahan pesäpuuta.
Ihan riemusta rinta nyt haljeta on,

kun päästy on toukokuuhun,
saman riemun vallassa tikkakin kai
lyö korvessa onttoon puuhun.
Käy hilpeäks mieli ja hymyyn suu,

ihan polkaten syntyy säkeet,
on toukokuu, on kukkien kuu,
soi huilut, aurat ja äkeet.
Ja oraasta nousee tähkäpäät

ja kullanväriset korret,
siitä leipäkulta se kerkiää,
siitä notkuu pirtin orret.
Ja orsien alla talviset yöt taas torkutaan toukokuuhun. Sitte

uusi kevät ja uudet työt ja hiirenkorvia puuhun!
KEVÄÄN TULO.
Niin kirkas on kevään kuu,

ja tähtien karkelot kajaa,
vielä pakkanen tiuvuissa ajaa,
ja kuurassa kiiltää puu.
Soi humina hongissa soilla. —

Kevään liehuvi tuuhea tukka.
Ja rentukka, kultainen kukka
jalat märkinä kahlaa joilla.
Joku päivä ja kaikki jo muuttuu.

On lämmin ja lehtiä puissa,
sinenseulojat salmiensuissa,
vain pääskyä enää puuttuu.
KESÄ-YÖ.
Yö kuuntelee…
Soudun solske kajaa.
Riutuvat kullat se kuohuhun nostaa,
kohti käy kalamajaa.
Yö katselee…
Somina maisemat sinessä nukkuu;
auteren silkillä kaukana, kaukana
raukea käkönen kukkuu.
Yö ajattelee:
Hallalta suojaan ihmisen kauraa,
salassa hiljaa kukan kehät kultaan —
aamulla lapsoset nauraa.
Yö nukahtaa…
Lumelta uniset pihlajat hohtaa.
Hämärän helmassa ilta ja aamu
Syleillen toisensa kohtaa.
ELON AIKANA.
I.
Seisovat pellolla kultaiset kuhilaat,

oljessa siristen sirpit ne soittaa.
Aurinko ihana itkien laskee.
Elokuun kuutamot koittaa.
Kuulevat korvessa kuusien latvat:

lehvien alla käy halla kuin mykkä —
yrittää hämyssä pellolle nousta,
siellä on vahtina kykkä.
Harmista haljeta halla on silloin,

vihansa vimmassa suohon se painuu.
Siellä se mudassa murjottelee,
kauran se kasvua vainuu.
Näkevät kuusessa oravan lapset:

nälkä kun kiertää peltoja yöllä —
mökkikyliltä polkua pitkin
pettukirves jo vyöllä.
II.
Pellolla seisovat kuhilasvahdit, kunniakujaa ne tekevät kuulle,

kun sen kultainen sirppi kieppuu metsässä puulta puulle.
Uutimen takana unehen raukee

raataja; kuhilaat unissa nyökkää,
ampumaketjussa korpehen juoksee,
kyntäjä sängystä hyökkää.
Vaimopa viereltä virkkavi: minne

noin sinä ukkeli unissa karkaat?
veisikö viljoja vaaniva halla,
koskisko kykkiin varkaat!
Pellolle kyntäjä synkkänä syöksyy, hällepä kuuhut se

kuusesta nauraa: nuku sä rauhassa, raataja, yösi, kyllä mä
kaitselen kauraa.
III.
Vaimonsa vierelle kyntäjä painuu.

Kuutamo-karkelon kuhilaat alkaa,
tanssivat hilpeän talkoopolskan. —
Pyörivät "kymmentä-jalkaa".
KESÄ-AAMU.
Koillinen kultoa kajastelee, kesäyö hopeita seuloo, hämytär

havunneulalla sinistä silkkiä neuloo.
Koillinen kultoa kajastelee,

ylitse hongikko-partaan
tuulen heräävä hilke käy,
lintu saa harppunsa hartaan.
Koillinen kultoa kajastelee,

sumutar suon yli kahlaa.
Metsänhaltija mäihää syö,
ryyppivi koivun mahlaa.
Ahdin pursikin puikeltaa

vienojen vesien kultaan.
Vellamo karilla kampailee
ja kaitsevi kahvitultaan.
Sävelten hyppynen herättelee herkkiä haaveita henkiin,

aatos pukevi hiljallensa satujen kultakenkiin. —
LAULUJA ARMAALLE

Full download Prentice Halls Federal Taxation 2014 Comprehensive 27th Edition Rupert Test Bank all chapter 2024 pdf

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Full download Prentice Halls Federal Taxation 2014 Comprehensive 27th Edition Rupert Test Bank all chapter 2024 pdf

Uploaded by

Copyright:

Available Formats

Prentice Halls Federal Taxation 2014

Comprehensive 27th Edition Rupert

Prentice Halls Federal Taxation 2014 Comprehensive 27th

Prentice Halls Federal Taxation 2014 Individuals 27th

Prentice Halls Federal Taxation 2014 Individuals 27th

Prentice Halls Federal Taxation 2014 Corporations

Prentice Halls Federal Taxation 2015 Comprehensive 28th

Prentice Halls Federal Taxation 2013 Comprehensive 26th

Prentice Halls Federal Taxation 2016 Comprehensive 29th

Prentice Halls Federal Taxation 2013 Comprehensive 26th

3) Brother-sister controlled groups can elect to file a consolidated tax return.

5) The election to file a consolidated return is made annually.

13) Identify which of the following statements is true.

19) Identify which of the following statements is true.

20) Identify which of the following statements is true.

21) Identify which of the following statements is true.

D) none of the above

27) Identify which of the following statements is true.

29) Which of the following statements is true?

31) Identify which of the following statements is false.

D) none of the above

34) Which of the following events is an intercompany transaction?

37) Identify which of the following statements is false.

38) Identify which of the following statements is true.

43) Identify which of the following statements is true.

45) Identify which of the following statements is true.

46) Identify which of the following statements is true.

How much of Subsidiary's loss can be carried back to last year?

Taxable Income Taxable Income

The $15,000 consolidated NOL reported in the current year

Taxable Income Taxable Income

The $9,000 consolidated NOL reported in the current year

54) Identify which of the following statements is true.

55) Identify which of the following statements is true.

Income (loss) Income (loss)

Which of the following statements is not correct?

58) Identify which of the following statements is true.

Corporation Taxable Income

Which of the following statements is correct?

Taxable Income Taxable Income

Which of the following statements is incorrect?

63) Identify which of the following statements is true.

Which one of the following statements is incorrect?

Ordinary Sec. 1231

Which of following statements is incorrect?

Which of the following statements is correct?

Mikä ääretön sylyys puhdasta, kirkasta ilmaa! Mikä riemu

Jokainen kukkula, puu ja pensas kuvastaa sen läpi. Tuolla

Olen kaiho mä kansani kalliin, hely häipyvä kantelen. Käki

Olen huilu mä korvesta kaukaa,

Olen henki, mi hankiin hukkuu,

Olen helkettä heimoni hengen, suvun sorjan, mi soitintaan

Se kulkee aina sukkasillaan. Toisinaan se pakenee

Ikävä on hämärän sukulainen.

Odotus on kuin pingoitettu kieli.

Lentävät mietteet, metsien puissa tuhannet huilut huminaa

Sävelet unhossa uinuneet kauan

Armaita ahoja aurinko kultaa,

Rinnassa tunnet sä kiihkeän polton, kuumeinen kaipuusi

Huurtehen helmaan päivyt pois putoaa taivaalta tammikuun.

Metsien latvoilla kaihoina vielä

Kalvavan ikävän sylissä istun.

Ajaa Luojan lumiaurat, kurki kirkuu kuskipuulla. Pärskyy vesi,

Repii jäitä, rouhii routaa,