Which of the Following Potentially Is a Disadvantage of Electing

question 40

Multiple Choice

Which of the following potentially is a disadvantage of electing to file a Federal consolidated corporate income tax return?

• A)The taxation of intercompany dividends is not eliminated.
• B)Recognition of losses from certain intercompany transactions is deferred.
• C)The tax basis of investments in the stock of subsidiaries is unaffected by members contributing to consolidated taxable income.
• D)The capital loss of one member is not offset against the capital gain of another member of the group.

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Definitions:

Sexist

Discriminating against people based on their sex, often holding stereotypes or prejudices towards a particular gender.

Cognitive Dissonance Theory

The idea that people have such distaste for perceiving inconsistencies in their beliefs, attitudes, and behavior that they will bias their own attitudes and beliefs to try to deny inconsistencies.

Attributional Ambiguity

A phenomenon whereby members of stigmatized groups often can be uncertain whether negative experiences are based on their own actions and abilities or are the result of prejudice.

Discrimination

Unequal treatment or prejudice against individuals on the basis of their membership in a particular group, negatively affecting their opportunities and well-being.