Identify Which of the Following Statements Is True

question 32

Multiple Choice

Identify which of the following statements is true.

• A)The basic accounting method elections that are used by the seller in intercompany transactions do not override the intercompany transaction rules.
• B)P and S are members of an affiliated group that has filed consolidated tax returns for a number of years. The sale of inventory by P, which was acquired from S in an intercompany transaction, outside the affiliated group triggers the restoration of gain by S.
• C)Last year, P, S, and T Corporations have filed consolidated tax returns for a number of years. Last year P Corporation sold land (a Sec. 1231 asset)to T at a $75,000 profit. The gain was deferred by P in last year's consolidated tax return. P sold the T stock to Mike on June 1 of this year. The stock sale will require P to report in its income the gain that was deferred on the land sale.
• D)All of the above are true.

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Definitions:

Botnet

A network of private computers infected with malicious software and controlled as a group without the owners' knowledge, e.g., to send spam messages.

Corporate Servers

High-capacity computers or computer systems that provide data, resources, or services to other computers or devices within a corporate environment.

Sony Hack

A high-profile cyber attack carried out against Sony Pictures in 2014, leading to the leak of confidential data including personal information about employees and unreleased films.

Cyberterrorism

A premeditated, politically motivated attack against information, computer systems, computer programs, and data that results in violence against noncombatant targets by subnational groups or clandestine agents.