Which of the Following Statements Is False Regarding Consolidated Tax

question 10

Multiple Choice

Which of the following statements is false regarding consolidated tax returns?

• A)An affiliated group can file a consolidated tax return only if it elects to do so.
• B)To file a consolidated tax return,one corporation must own at least 50% of the stock of another corporation.
• C)For a group of corporations filing a consolidated tax return,an advantage is that losses of one group member may offset gains of another group member.
• D)For a group of corporations filing a consolidated tax return,losses from certain intercompany transactions are deferred until realized through a transaction outside of the group.

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Definitions:

Resale Price Maintenance

A practice where manufacturers set the minimum prices that retailers can charge for their products.

Resale Price Maintenance

Resale price maintenance is a practice in which manufacturers dictate the minimum prices retailers may charge for their products to keep prices at a certain level.

Economic Purposes

The rationale or objectives behind individual or collective economic activities, usually aimed at satisfying needs, accumulating wealth, or improving standards of living.

Prisoners' Dilemma

A scenario in game theory where individuals making rational choices may end up in a worse state due to an inability to cooperate.