Which of the Following Events Is an Intercompany Transaction

question 44

Multiple Choice

Which of the following events is an intercompany transaction?

• A) a parent corporation's sale of stock of a subsidiary corporation to a nonmember of the group
• B) dividend payment received from a subsidiary corporation to its parent corporation; the subsidiary corporation is not an includible corporation
• C) a capital contribution
• D) accrual of interest on a loan made by one group member to another group member; both group members use the accrual method of accounting

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Definitions:

Intent

The state of mind with which an act is done, reflecting purpose, foresight, or desire towards a particular outcome.

Crimes

Acts or omissions that violate laws and are punishable by the government.

Foreign Intelligence Surveillance Court

A federal tribunal created to review and grant warrants for surveillance on foreign espionage agents within the United States requested by federal law enforcement and intelligence bodies.

Terrorism

The use of violence and threats to intimidate or coerce, especially for political purposes.