Identify Which of the Following Statements Is False

question 41

Multiple Choice

Identify which of the following statements is false.

• A) Affiliated groups of corporations filing a consolidated tax return are not eligible for the small corporation exemption from the corporate alternative minimum tax.
• B) An intercompany transaction generally results in the selling member and buying member in a property transaction being treated as divisions of a single corporation.
• C) Intercompany dividends and undistributed subsidiary earnings do not create temporary differences for affiliated companies filing a consolidated return.
• D) A corresponding item includes the income, gain, deduction, or loss amount reported by the buyer from an intercompany transaction, or from property acquired in an intercompany transaction.

---

Definitions:

Demand Schedule

A demand schedule is a table that shows the quantity of a good that consumers are willing to buy at various price levels.

Cheeseburgers

A popular type of sandwich consisting of one or more cooked patties of ground meat, placed inside a sliced bread roll or bun, often accompanied by cheese, lettuce, tomato, onions, pickles, and other condiments.

Costs

The amount of money required to purchase, produce, or maintain something.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price.