Identify Which of the Following Statements Is True

question 3

Multiple Choice

Identify which of the following statements is true.

• A)To be part of an affiliated group, a corporation must be at least 80% directly owned by another group member.
• B)Only common stock is considered when determining if the 80% ownership test is met for affiliated group eligibility.
• C)An affiliated group electing to file a consolidated return may be composed of as few as two corporations.
• D)All of the above are false.

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Definitions:

Lower-middle Class

Refers to a social group that is between the working class and the middle class, often characterized by moderate income levels, some post-secondary education, and white-collar or skilled blue-collar jobs.

Blue Collar

A description characterizing skilled and semi-skilled workers who perform manual labor or work in service or clerical jobs.

Upper Class

An elite and largely self-sustaining group who possess most of the country’s wealth; they constitute about 1 percent of the U.S. population.

Caste System

A form of social stratification in which status is determined by one’s family history and background and cannot be changed.