Which of the Following Statements Is True Regarding the Filing

question 67

Multiple Choice

Which of the following statements is true regarding the filing of income taxes for an affiliated group?

• A) Domestic subsidiaries greater than 50% ownership must file a consolidated tax return.
• B) Domestic subsidiaries greater than 60% ownership must file a consolidated tax return.
• C) Domestic subsidiaries greater than 80% ownership must file a consolidated tax return.
• D) Domestic subsidiaries greater than 80% ownership may file a consolidated tax return.
• E) Foreign subsidiaries must file a consolidated tax return.

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Definitions:

Express Trust

A trust explicitly created by a settlor, typically in a written document, specifying how trust assets are to be managed and distributed.

Voluntary Action

An act done by choice or free will, without external compulsion.

Fiduciary Relationship

A trustworthy legal and ethical connection where the fiduciary is responsible for acting in the utmost interest of the principal or beneficiary.

Executor

An individual appointed to administer the estate of a deceased person in accordance with their will.