A Consolidated Return's Tax Liability Is Owed by

question 71

Multiple Choice

A consolidated return's tax liability is owed by

• A)all group members in equal portions.
• B)the group member responsible for that portion of the tax liability.
• C)all group members who are severely liable.
• D)the parent corporation.

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Definitions:

Condemnation Proceeds

Financial compensation received when property is taken by a government authority through eminent domain.

Recognized Gain

The amount of profit that is realized from the sale of assets that must be reported for tax purposes.

Adjusted Basis

The original cost of a property adjusted for factors such as depreciation or improvements, used to calculate capital gains or losses for tax purposes.

Recognized Gain

The profit earned from the sale of an asset that must be reported for tax purposes.