Identify Which of the Following Statements Is True

question 32

Multiple Choice

Identify which of the following statements is true.

• 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.
• D)All of the above are true.

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Definitions:

1970s

A decade marked by significant political, social, and cultural change globally, recognized for movements advocating for civil rights, environmental issues, and a shift in music and fashion.

Jimmy Carter

Jimmy Carter was the 39th President of the United States, serving from 1977 to 1981, known for his commitment to peace and human rights.

Presidency

The office and function of the President, the head of state and government in a republic, especially referring to the executive branch in the United States.

Accomplishments

Achievements or completed goals that are often recognized and celebrated for their level of success or contribution to a particular field or activity.