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:

Type of Business

Categories or classifications of commercial organizations based on factors like ownership, size, and product or service rendered.

Chapter 7

A provision of U.S. bankruptcy law under which an individual or business liquidates assets to pay off debts under the guidance of a court-appointed trustee.

Trustee

Someone legally appointed to manage and administer property or assets for the benefit of another, often used in contexts like bankruptcy, trust funds, and estates.

IRA

An Individual Retirement Account, a financial tool designed to help individuals save for retirement with tax advantages.