Which of the Following Is Not a Requirement That Must

question 44

Multiple Choice

Which of the following is not a requirement that must be met before a group files a consolidated return?

• A)None of the group members can use the LIFO method of accounting for inventories.
• B)All of the corporations must be members of an affiliated group.
• C)None of the corporations can be ineligible under the Code to file on a consolidated basis with the others.
• D)The group members must share a common tax year end.
• E)All of the above are requirements for the consolidation election.

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Definitions:

Ultimatum Games

A type of game in experimental economics where two players interact to decide how to divide a sum of money; one proposes the split, and the other accepts or rejects it.

Endowment Effect

A psychological phenomenon in which people assign higher value to things merely because they own them.

Loss Aversion

In prospect theory, the property of most people’s preferences that the pain generated by losses feels substantially more intense than the pleasure generated by gains.