Identify Which of the Following Statements Is False

question 13

Multiple Choice

Identify which of the following statements is false.

• A)A corresponding item includes the income, gain, deduction, or loss amount reported by the buyer from an intercompany transaction, or from property acquired in an intercompany transaction.
• B)Affiliated groups of corporations filing a consolidated tax return are not eligible for the small corporation exemption from the corporate alternative minimum tax.
• C)An intercompany transaction generally results in the selling member and buying member in a property transaction being treated as divisions of a single corporation.
• D)Intercompany dividends and undistributed subsidiary earnings do not create temporary differences for affiliated companies filing a consolidated return.