Identify Which of the Following Statements Is True

question 69

Multiple Choice

Identify which of the following statements is true.

• A)A shareholder corporation that receives a nondividend distribution from an affiliated group member is not required to recognize a gain when the distribution amount exceeds the shareholder's basis in the distributing corporation's stock.
• B)The dividends-received deduction limitation for dividends received by members of an affiliated group from nonmembers is applied to the separate taxable income of each group member.
• C)The dividends-received deduction cannot be taken in full on a consolidated return if the deduction amount creates or increases a consolidated NOL.
• D)All of the above are false.

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Definitions:

Profit Maximisation

An objective of management to achieve the highest possible profit from operations, usually by increasing revenue and/or reducing costs.

Employee Morale

The overall outlook, attitude, satisfaction, and confidence that employees feel at work, which can significantly impact productivity and retention.

Constraints

Limitations or restrictions that affect the planning, process, or outcome of an activity or system.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choosing between options.