Identify Which of the Following Statements Is True

question 56

Multiple Choice

Identify which of the following statements is true.

• A)P Corporation receives a dividend from its 100%-owned subsidiary corporation S. P and S have filed consolidated tax returns for a number of years. The dividend payment is out of S's earnings and profits and reduces P's investment in S. The dividend is an intercompany transaction and excluded from P's gross income.
• B)The consolidated dividends-received deduction percentage for dividends received by one affiliated group member from another affiliated group member is always 100%.
• C)The dividends-received deduction claimed when a $50,000 dividend is received from a 100%-owned nonconsolidated life insurance company is $35,000 (ignoring any dividends-received deduction limitations).
• D)All of the above are false.

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Definitions:

Activators

Proteins that bind to specific DNA sites to increase the likelihood of transcription of a particular gene.

Transcription

The act of transferring the encoded information from a DNA strand into a novel molecule of messenger RNA (mRNA).

RNA Interference

Mechanism in which RNA molecules interfere with gene expression by preventing translation of specific mRNAs.

RNA Processing And Transport

The series of modifications RNA molecules undergo after transcription, including splicing, editing, and transport out of the nucleus to the cytoplasm for translation.