Generally, Upon Making a Proper Election an Affiliated Group Is

question 46

Multiple Choice

Generally, upon making a proper election an affiliated group is considered to remain in existence for purposes of filing a consolidated tax return if

• A)Form 1122 is filed annually with the IRS at least 90 days before the due date of the consolidated tax return.
• B)The common parent has at least one subsidiary that was a member of the group for at least six months during the year.
• C)The subsidiary has sold no more than 80 percent of its stock to a party or parties other than the parent group.
• D)The common parent has filed a consolidated report the year before and has a subsidiary at the end of the tax year.
• E)The common parent has at all times during the tax year at least one subsidiary that was a member of the group at any time during the year.

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Definitions:

Repossessed

The act of taking back an asset, typically used when a borrower fails to make payments on a secured loan.

Deferred Gross Profit

Profit on installment sales that is not recognized immediately but deferred and recognized as payment is received.

Balance Sheet

An overview of a company's financial status, showcasing assets, financial obligations, and the stake of its shareholders at a precise moment.

Current Asset

Any asset expected to be converted into cash or used up within one business cycle or a year, including cash, inventory, and accounts receivable.