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:

Quantitative Approaches

Research methods focusing on the collection and analysis of numerical data to understand patterns, relationships, and causality.

Rich Descriptions

Detailed, nuanced accounts of phenomena, typically in qualitative research, that aim to capture the complexity and context of the subject matter.

Experimental Control

The practice of eliminating or managing variables that can affect the outcome of an experiment, except for the variable being studied.

Causal Relationships

Refers to the connection between two variables where a change in one variable directly causes a change in the other variable.