How Do the Members of a Federal Consolidated Group Split

question 36

Multiple Choice

How do the members of a Federal consolidated group split among themselves the benefits of the lower tax brackets on the first $75,000 of taxable income?

• A)According to their relative net asset holdings.
• B)According to an internal tax-sharing agreement.
• C)According to an internal tax-sharing agreement, which may be modified by the IRS upon audit.
• D)According to a tax-sharing agreement that must be approved by the IRS by the end of the first quarter of the tax year.

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Definitions:

Personal Initiative

An individual's action that is anticipatory, self-starting, and persistent in overcoming difficulties to achieve goals.

High Need

A strong requirement or desire for something, often essential for well-being or attainment of certain goals.

Achievement

The successful completion of a goal or task, often recognized by some form of reward or acknowledgment.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors; it is what causes you to act, whether it is getting a glass of water to reduce thirst or reading a book to gain knowledge.