Which of the Following Statements Is False Regarding Consolidated Tax

question 101

Multiple Choice

Which of the following statements is false regarding consolidated tax returns?

• A)An affiliated group can file a consolidated tax return only if it elects to do so.
• B)To file a consolidated tax return, one corporation must own 50percent or more of the stock of another corporation.
• C)For a group of corporations filing a consolidated tax return, an advantage is that losses of one group member may offset gains of another group member.
• D)For a group of corporations filing a consolidated tax return, losses from certain intercompany transactions are deferred until realized through a transaction outside of the group.

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Definitions:

Spermatic Artery

A blood vessel that supplies blood to the testis and the ductus deferens.

Spermatic Vein

A vein draining blood from the testicle to the inferior vena cava or the left renal vein, involved in the temperature regulation of the testes.

Vagina

The muscular tube leading from the external genitals to the cervix of the uterus in women and most female mammals.

Meeting Effectively

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