Dowe and Cheatem Corporations are affiliated and have filed consolidated tax returns for the past three years. Dowe acquires 100% of Howe stock on January 1 of 2020. Howe Corporation filed separate returns previously. Dowe, Cheatem, and Howe filed a consolidated return for 2020 and reported the following taxable incomes:   Corporation Taxable Income 2019 Taxable Income 2020 Dowe Cheatem Howe $18,000     9,000     (17,000) $ 12,000     8,000 20,000   How much of the 2019 Howe NOL be used to offset DCH in 2020? A) $20,000 B) $17,000 C) $16,000 D) $0 Please provide an explanation, thank you!

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.