Identify Which of the Following Statements Is True

question 63

Multiple Choice

Identify which of the following statements is true.

• A)A corporation that is a member of an affiliated group filing a consolidated tax return may be allowed a tax year which is different from the group's parent.
• B)An S corporation must generally use a calendar year.
• C)A corporation's first year must cover a twelve-month period.
• D)All of the above are false.

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Definitions:

Lease

A contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset for a specified period.

Commercial Property

Real estate used for business purposes, including office buildings, retail spaces, warehouses, and hotels.

Residential Property

Real estate designed for people to live in, as opposed to commercial or industrial property.

Automobile Insurance

Insurance coverage for cars, trucks, motorcycles, and other road vehicles, providing protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom.