Which of the Following Potentially Is a Disadvantage of Electing

question 76

Multiple Choice

Which of the following potentially is a disadvantage of electing to file a Federal corporate income tax consolidated return?

• A) Increased deduction amounts when computations are made on a group basis.
• B) Deferral of gains realized in transactions between group members.
• C) Increased basis in the stock of a subsidiary that generates annual taxable income.
• D) Additional administrative costs in complying with the election.

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Definitions:

Pleasure Principle

A psychological concept suggesting individuals seek immediate gratification of needs and desires to avoid pain.

Unconscious

The part of the mind that contains thoughts, memories, and desires not within the immediate awareness of the individual.

Sibling Rivalry

The competition or animosity between brothers and sisters, which can be motivated by the desire for parental attention, among other factors.

Alfred Adler

An Austrian psychotherapist and founder of Adlerian psychology, emphasizing the importance of the feeling of inferiority in the development of personality.