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:

Memorized Report

A feature in accounting software that allows users to save customized report settings for future use without reconfiguring them each time.

New Group

A category or collection of items or entities that are formed or compiled together for a specific purpose or identification.

IRS

The United States Internal Revenue Service, a federal agency responsible for collecting taxes and administering the Internal Revenue Code.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.