Identify Which of the Following Statements Is True

question 43

Multiple Choice

Identify which of the following statements is true.

• A)A built-in deduction accrues in a separate return year, but is not recognized in a consolidated return year.
• B)Section 382 adopts a single-entity approach in determining ownership changes.
• C)The 50-percentage-point minimum stock ownership change that triggers the Sec. 382 loss limitation rules will not occur in acquisitive transactions involving a group of corporations filing consolidated returns.
• D)All of the above are false.

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Definitions:

Automobile Manufacturer

A company that produces and sells vehicles designed for transporting people and goods on roads.

Property Taxes

Taxes assessed on real estate properties, based on the property's value, and paid to local governments.

Factory Building

A physical structure used for the manufacturing or assembly of goods.

Period Cost

Costs that are expensed in the period in which they are incurred, not directly tied to production activities.