Which of the Following Intercompany Transactions Creates Temporary Book/tax Differences

question 38

Multiple Choice

Which of the following intercompany transactions creates temporary book/tax differences when a parent corporation owns 100% of a subsidiary's stock and the companies file a consolidated return?

• A) intercompany sale
• B) undistributed subsidiary earnings
• C) intercompany dividends
• D) None of the above items create temporary differences.

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