Identify Which of the Following Statements Is True

question 12

Multiple Choice

Identify which of the following statements is true.

• A)Corporations that join in a consolidated return must adopt the same tax year as the parent corporation.
• B)Permission to discontinue the filing of consolidated tax returns is sometimes granted by the IRS.
• C)Additional administrative costs may be incurred when filing a consolidated tax return.
• D)All of the above are true.

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Definitions:

General Welfare Clause

Refers to a section of the United States Constitution empowering Congress to pass laws that are for the good of the country as a whole.

Supremacy Clause

A provision in the United States Constitution that establishes federal law as the supreme law of the land, taking precedence over state laws.

Incorporation Doctrine

A legal principle that applies the Bill of Rights to the states by interpreting the 14th Amendment's Due Process Clause as encompassing those rights.

Bill of Rights

The first ten amendments to the U.S. Constitution, ratified in 1791, guaranteeing essential rights and liberties to American citizens.