Which of the Following Intercompany Transactions Creates Temporary Book/tax Differences

question 86

Multiple Choice

Which of the following intercompany transactions creates temporary book/tax differences when a parent corporation owns 100% of a subsidiary's stock and the companies file a consolidated return?

• A)intercompany dividends
• B)undistributed subsidiary earnings
• C)intercompany sale
• D)None of the above items create temporary differences.

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Definitions:

Class Action

A lawsuit filed or defended by an individual or small group acting on behalf of a large group.

Company-Wide Policy

Guidelines and rules established by a business that apply to all employees and operations across the entire organization.

National Labor Relations Act

The National Labor Relations Act of 1935 protects the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices.

Refuses To Bargain

The act of rejecting or declining to engage in negotiation processes, typically in labor contexts.