A Calendar Year Parent Corporation Wants to File Its Tax

question 91

True/False

A calendar year parent corporation wants to file its tax returns on a consolidated basis with its affiliates. The group's election to file consolidated Federal corporate income tax returns must be made by the extended due date of the first return on which the consolidation is applied i.e., October 15).

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Definitions:

Standard Practices

Established and widely accepted methods or procedures used in a field or industry.

Finance Charge

The cost associated with obtaining credit, including interest, fees, and other charges.

Financing Charge

An interest or fee paid for the use of borrowed money.

Uncollectible Accounts

Accounts receivable that are recognized as unlikely to be collected, leading to their write-off as bad debts.