Identify Which of the Following Statements Is True

question 32

Multiple Choice

Identify which of the following statements is true.

• A)The basic accounting method elections that are used by the seller in intercompany transactions do not override the intercompany transaction rules.
• B)P and S are members of an affiliated group that has filed consolidated tax returns for a number of years. The sale of inventory by P, which was acquired from S in an intercompany transaction, outside the affiliated group triggers the restoration of gain by S.
• C)Last year, P, S, and T Corporations have filed consolidated tax returns for a number of years. Last year P Corporation sold land (a Sec. 1231 asset)to T at a $75,000 profit. The gain was deferred by P in last year's consolidated tax return. P sold the T stock to Mike on June 1 of this year. The stock sale will require P to report in its income the gain that was deferred on the land sale.
• D)All of the above are true.

---

Definitions:

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature in the workplace or academic settings.

Senior Executive

A top-level manager in an organization, responsible for making overarching decisions and policies.

Justice

The principle of fairness and moral rightness that guides the equitable treatment of individuals and the administration of law.

Terminal Values

Fundamental beliefs or end goals that a person or organization considers most important and strives to achieve throughout life or operation.