Which of the Following Statements Is Incorrect with Respect to Parent-Subsidiary

question 79

Multiple Choice

Which of the following statements is incorrect with respect to parent-subsidiary corporations?

• A)If a consolidated tax return is filed,losses on intercompany sales cannot be immediately recognized.
• B)A parent-subsidiary group must file a consolidated tax return.
• C)A parent-subsidiary group is one where a common parent corporation owns,directly or indirectly,at least 80% of one or more other corporations.
• D)With a consolidated return,net losses of one company can offset net income from another company.

---

Definitions:

Mental Age

A measure of an individual's cognitive ability expressed in terms of the age at which an average individual reaches the same ability.

IQ

Short for Intelligence Quotient, a numerical score derived from standardized assessments designed to measure human intelligence and cognitive abilities.

Individual Differences

Refer to the variations or disparities among individuals in regard to their behaviors, emotions, cognition, and development.

Verbal Abilities

The capacity to use language effectively, including skills in vocabulary, grammar, and communication.