Which of the Following Is Not an Advantage of Filing

question 74

Multiple Choice

Which of the following is not an advantage of filing a consolidated income tax return?

• A) The existence of deferred losses in ending inventory.
• B) The ability to use net operating losses of one company to offset profits of another company.
• C) The existence of intra-entity gross profit remaining in ending inventory.
• D) Transfers of inventory at a transfer price above cost.
• E) There is no difference between U.S. GAAP and tax accounting rules for dividends paid to a parent by an 85%-owned subsidiary.

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Definitions:

Psychoanalysis

A therapeutic technique and theory of personality developed by Sigmund Freud, focusing on unconscious motives and conflicts.

Humanistic Therapy

A therapeutic approach emphasizing an individual's innate potential for growth and self-actualization, focusing on the present and future instead of the past.

Insight

The capacity to gain an accurate, deep intuitive understanding of a person or thing.

Counterconditioning

A behavior therapy technique that involves replacing an undesirable response to a stimulus with a more desirable one.