Which of the Following Is Not an Advantage of Filing

question 83

Multiple Choice

Which of the following is not an advantage of filing a consolidated income tax return?

• A) The existence of unrealized losses in ending inventory.
• B) The ability to use net operating losses of one company to offset profits of another company.
• C) The deferral of unrealized gains.
• D) Transfers of inventory at a transfer price above cost.
• E) Intercompany dividends are not taxable.

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Definitions:

Decrease Supply

A situation where there's a reduction in the quantity of a good or service that producers are willing and able to sell at a given price.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to a change in price.

Tax

A mandatory financial charge imposed by a governmental organization on individuals or entities to fund public expenditures.

Slightly Inelastic

A situation where a change in price leads to a relatively smaller change in the quantity demanded or supplied.