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.

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Definitions:

Howard Gardner

An American developmental psychologist best known for his theory of multiple intelligences, which suggests that people have various kinds of intelligence strengths.

Robert Sternberg

An American psychologist best known for his theory on intelligence and creativity, including the triarchic theory of intelligence.

Different Kinds

Refers to a variety or numerous types of something.

Genetic Influences

The contribution of genes inherited from one's parents to the individual's phenotypic traits, including physical appearance, behavior, and vulnerability to certain diseases.