Which of the Following Statements Regarding Controlled Groups Is False

question 55

Multiple Choice

Which of the following statements regarding controlled groups is false?

• A) The purpose of the controlled group rules is to essentially treat the group as though it were one entity for purposes of determining certain tax benefits.
• B) Having several entities treated as a controlled group is advantageous for tax purposes because each corporation in the group is allowed to use the 15% tax bracket in the corporate tax rate schedule in computing its regular income tax liability.
• C) Lauren owns 100% of Corporation A stock and 100% of Corporation B stock. Corporation A and Corporation B form a controlled group.
• D) Corporation A owns 100% of Corporation B. Corporation A and Corporation B form a controlled group.