Which of the Following Statements Is False Regarding Consolidated Tax

question 10

Multiple Choice

Which of the following statements is false regarding consolidated tax returns?

• A)An affiliated group can file a consolidated tax return only if it elects to do so.
• B)To file a consolidated tax return,one corporation must own at least 50% of the stock of another corporation.
• C)For a group of corporations filing a consolidated tax return,an advantage is that losses of one group member may offset gains of another group member.
• D)For a group of corporations filing a consolidated tax return,losses from certain intercompany transactions are deferred until realized through a transaction outside of the group.

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Definitions:

Elasticity

A measure in economics of how the quantity demanded or supplied of a good changes in response to price or other factors.

Upper-left Portion

Typically refers to the area in the upper left of a graph or chart, which can represent a specific range of values or conditions in graphical analyses.

Original Price

The initial price set for a product or service before any discounts, rebates, or promotions are applied.

Price Elasticity

An assessment of the degree to which the demand or supply for a product varies following a price alteration.