Identify Which of the Following Statements Is True

question 27

Multiple Choice

Identify which of the following statements is true.

• A) When a new corporation joins an affiliated group, all of its income and expense items for the tax year, including the acquisition date, must be allocated between the separate tax return and consolidated tax return that are to be filed based on the number of days included in each of the two tax years.
• B) All members of a consolidated group must use the same tax year.
• C) A consolidated return election may be revoked after 5 years.
• D) All of the above are false.

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Definitions:

Uncertainty Reduction

The process of acquiring information to minimize the uncertainties about decision-making or more fully understand a situation.

Optimizing

The process of making the best or most effective use of a situation, resource, or opportunity with the goal of achieving the optimum outcome.

Implementation Stage

The phase in a project or strategy where plans are executed and theories are put into practice.

Ethics Double-check

A process of verifying that actions or decisions adhere to moral and ethical standards.