Which of the Following Is Not Generally a Disadvantage of Filing

question 88

Multiple Choice

Which of the following is not generally a disadvantage of filing Federal corporate income tax returns on a consolidated basis?

• A)Compliance costs usually are higher when a consolidation election is in effect.
• B)Realized losses from transactions between affiliates are not recognized immediately.
• C)Capital gains from one affiliate can be offset by the capital losses from another.This can reduce the tax liabilities of the group as a whole.
• D)The election generally is binding for future tax years.

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Definitions:

Environmental Protection Legislation

Laws and regulations designed to conserve the environment and protect natural resources from pollution and overexploitation.

Pollution Control

Actions and devices designed to reduce or eliminate the release of harmful substances into the environment.

Monitoring Procedures

Systems and methods implemented to systematically observe, check, and record activities or processes to ensure they are happening as planned or are meeting established standards.

Transportation of Dangerous Goods Act

Legislation that governs the handling, transport, and regulation of hazardous materials to ensure public safety and environmental protection.