Which of the Following Events Is an Intercompany Transaction

question 29

Multiple Choice

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

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Definitions:

Bipedalism

The ability to walk on two legs, a characteristic mainly observed in humans among primates.

Foramen Magnum

A large opening in the base of the skull through which the spinal cord enters and connects to the brain, indicative of bipedal or quadrupedal locomotion in vertebrates.

Femur

The longest and strongest bone in the human body, extending from the hip to the knee.

Levallois Tools

A technology of stone tool production characterized by the striking of flakes from a prepared core, used by prehistoric humans.