Fieldcrest Mills, Inc. v. Coble

CAMPBELL, Judge.

The plaintiff contends, pursuant to G.S. 105-130.8, that following the merger of Screen Print, a wholly-owned subsidiary, into its parent, Fieldcrest Mills, Inc., the surviving corporation (Fieldcrest) can carry forward and deduct a net economic loss incurred during the preceding year by the subsidiary, (Screen Print). The plaintiff relies in its argument for allowing the deduction on the continuity of business enterprise test as defined in federal and North Carolina cases.

As the plaintiff has pointed out in its brief, the continuity of business enterprise test as espoused in…