Identify Which of the Following Statements Is True

question 12

Multiple Choice

Identify which of the following statements is true.

• A)Corporations that join in a consolidated return must adopt the same tax year as the parent corporation.
• B)Permission to discontinue the filing of consolidated tax returns is sometimes granted by the IRS.
• C)Additional administrative costs may be incurred when filing a consolidated tax return.
• D)All of the above are true.

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Definitions:

Lien

A claim to property.

Real Property

Land and anything permanently attached to it, including buildings and natural resources.

Permanently Attached

Items that are fixed securely to a property in such a way that removing them would cause damage to the property or the items themselves.

Irrevocable Right

An irrevocable right refers to a legal entitlement or permission that cannot be withdrawn, cancelled, or revoked by the grantor once granted.