Parent and Junior Form a Unitary Group of Corporations

question 110

Multiple Choice

Parent and Junior form a unitary group of corporations. Parent is located in a state with an effective tax rate of 3%, while Junior's effective tax rate is 9%. Acting in concert to reduce overall tax liabilities, the group should:

• A) Execute an intercompany loan, such that Junior pays deductible interest to Parent.
• B) Have Parent charge Junior an annual management fee.
• C) Shift Parent's high-cost assembly and distribution operations to Junior.
• D) All of the above are effective income-shifting techniques for a unitary group.
• E) None of the above is an effective income-shifting technique for a unitary group.

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Definitions:

Reproductive Health

A state of complete physical, mental, and social well-being in all matters relating to the reproductive system, at all stages of life.

Menstrual Issues

Problems or irregularities related to the menstrual cycle, such as pain, heavy flow, or missed periods.

Pap Exam

A screening procedure for cervical cancer involving the collection of cells from the cervix.

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Behaviors in adolescents that contribute to injuries, violence, unintended pregnancies, and chronic diseases, often investigated to improve public health strategies.