Identify Which of the Following Statements Is True

question 1

Multiple Choice

Identify which of the following statements is true.

• A) If a corporation becomes a member of an affiliated group within the first thirty days of the corporation's tax year, the corporation can elect not to file a short- period tax return.
• B) When a corporation joins in filing a consolidated return, taxable income of the member is combined with other members' taxable income prior to any adjustments.
• C) A corporation may be required to file a separate return and file with an affiliated group in the same calendar year.
• D) All of the above are false.

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Definitions:

Impairment Loss

The amount by which the carrying value of an asset exceeds its recoverable amount.

Assets

Resources owned or controlled by a business from which future economic benefits are expected.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Depreciation

A method of allocating the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.