Identify Which of the Following Statements Is True

question 56

Multiple Choice

Identify which of the following statements is true.

• A)P Corporation receives a dividend from its 100%-owned subsidiary corporation S. P and S have filed consolidated tax returns for a number of years. The dividend payment is out of S's earnings and profits and reduces P's investment in S. The dividend is an intercompany transaction and excluded from P's gross income.
• B)The consolidated dividends-received deduction percentage for dividends received by one affiliated group member from another affiliated group member is always 100%.
• C)The dividends-received deduction claimed when a $50,000 dividend is received from a 100%-owned nonconsolidated life insurance company is $35,000 (ignoring any dividends-received deduction limitations).
• D)All of the above are false.

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Definitions:

Stimulant Medications

Drugs that increase activity in the brain and nervous system, often used to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy.

ADHD

Attention Deficit Hyperactivity Disorder is a brain-based, developmental disorder marked by distractibility, excessive energy, and impulsive actions.

Cognitive Behavioral Therapies

A variety of psychotherapeutic approaches that aim to solve problems by changing dysfunctional emotions, behaviors, and thoughts.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by patterns of behavior that include inattention, hyperactivity, and impulsivity.