Which of the Following Events Is an Intercompany Transaction

question 44

Multiple Choice

Which of the following events is an intercompany transaction?

• A) a parent corporation's sale of stock of a subsidiary corporation to a nonmember of the group
• B) dividend payment received from a subsidiary corporation to its parent corporation; the subsidiary corporation is not an includible corporation
• C) a capital contribution
• D) accrual of interest on a loan made by one group member to another group member; both group members use the accrual method of accounting

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Definitions:

Unselfishly Serving

The act of providing service or support to others without the expectation of personal gain.

Professionally Representing

The act of advocating for or promoting an organization, product, or service in a manner that reflects positively on the professional image and standards of the entity being represented.

Sales Program

A planned set of sales activities or strategies designed to increase product sales or market share.

Learn Faster

Techniques or methods aimed at increasing the speed at which one acquires knowledge or skills.