An Affiliated Group Must File a Consolidated Tax Return

question 24

True/False

An affiliated group must file a consolidated tax return.
Filing a consolidated tax return is an election in the first year, after which it is mandatory on a going forward basis.

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Definitions:

Rent Expense

An account representing the cost incurred from renting premises, equipment, or other assets for business operations over a specific period.

Interest Revenue

Income earned from lending money or through investments in interest-bearing assets.

Temporary Account

An account that is used to collect balances over an accounting period and is reset to zero at the end of the period, such as revenue and expense accounts.

Advertising Expense

Costs incurred by a business to promote its products or services.