Which of the Following Is Not a Reason for a Consolidated

question 111

Multiple Choice

Which of the following is not a reason for a consolidated group to file separate income tax returns?

• A) There are no intra-entity transfers.
• B) There are no deferred intra-entity gross profits in ending inventory.
• C) One of the companies is a foreign company.
• D) Parent owns 68 percent of one company and 82 percent of another.
• E) No temporary differences will exist with separate income tax returns.

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Definitions:

Marital Success

The aspects of a marriage relationship that contribute to the enduring satisfaction, stability, and wellbeing of both partners.

Cohabitants

Individuals who live together in a domestic partnership without being married.

Economic Status

The social position or class of an individual or group often measured by income, wealth, occupation, or education.

Intimate Relationships

Close, personal connections between individuals, characterized by emotional depth and intimacy, which can include both romantic and platonic relationships.