Parent Corporation owns 85% of the common stock and 100% of the preferred stock of Subsidiary Corporation. Thecommon stock and preferred stock have adjusted bases of $500,000 and $200,000, respectively, to Parent. Subsidiaryadopts a plan of liquidation on July 3 of the current year, when its assets have a $1 million FMV. Liabilities on that dateamount to $850,000. On November 9, Subsidiary pays off its creditors and distributes $150,000 to Parent with respect toits preferred stoclc No cash remains to be paid to Parent with respect to the remaining $50,000 of its liquidationpreference for the preferred stock, or with respect to any of the common stoclc In each of Subsidiary’s tax years, less than10% of its gross income has been passive income. What are the amount and character of Parent’s loss on the preferredstock? The common stock?A partial list of research sources is0 IRC Secs. 165(g)(3) and 332(a)0 Reg. Sec 1.332.2(b)0 Spaulding Bakeries, Inc, 27 T. C. 684 (1957)0 H. K. Porter Co., Inc, 87 T. C 689 (1986)

Selected t-account balances for bloomfield company are shown below as of january 31, which reflect its accounting adjustments. the firm uses a calendar-year accounting period, but prepares monthly accounting adjustments. suppliesjan. 31 bal. 1,800 1,800 jan. 31 bal. supplies expensejan. 31 bal. 1,920 1,148 jan. 31 bal. prepaid insurancejan. 31 bal. 1,148 1,148 jan. 31 bal. insurance expensejan. 31 bal. 164 164 jan. 31 bal. wages payablejan. 31 bal. 1,400 1,400 jan. 31 bal. wages expensejan. 31 bal. 6,400 6,400 jan. 31 bal. truckjan. 31 bal. 17,376 17,376 jan. 31 bal. accumulated depreciation -truckjan. 31 bal. 5,068 5,068 jan. 31 bal. a. if the amount in supplies expense represents the january 31 adjustment for the supplies used in january, and $1,240 worth of supplies were purchased during january, what was the january 1 beginning balance of supplies? $answerb. the amount in the insurance expense account represents the adjustment made at january 31 for january insurance expense. if the original insurance premium was for one year, what was the amount of the premium, and on what date did the insurance policy start? amount of the premium $answerthe policy began on answerjune 1july 1august 1september 1october 1november 1 of the previous year. c. if we assume that no beginning balance existed in either in either wage payable or wage expense on january 1, how much cash was paid as wages during january? $answerd. if the truck has a useful life of four years (or 48 months), what is the monthly amount of depreciation expense, and how many months has bloomfield owned the truck? answermonths