Which of the Following Statements Is True with Regard to Intercompany

question 48

Multiple Choice

Which of the following statements is true with regard to intercompany transactions?

• A)The gain or loss on an intercompany transaction never is taxed.
• B)An intercompany transaction is eliminated from consolidated taxable income.
• C)All intercompany gains are recognized,but losses must be deferred.
• D)A cash sale of a business asset by the purchasing member to an acquirer outside of the group triggers immediate recognition of the gain or loss.
• E)The gain or loss on an intercompany transaction is deferred for up to ten years,after which it is recognized.

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Definitions:

Minority

A subgroup within a population that is fewer in numbers than the majority and may be differentiated by characteristics such as race, religion, language, or sexual orientation.

Night Terrors

A sleep disorder causing feelings of terror or dread, usually occurring during non-REM sleep stages, and often accompanied by screaming, thrashing, and a high degree of difficulty in waking the sufferer.

Sleep Spindles

Bursts of brain activity visible on an EEG that occur during stage 2 of sleep, associated with memory consolidation and learning.

Incoherently

Lacking logical or meaningful connection; speaking or thinking in a confused or disjointed manner.