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:

Tyrannical

Exercising power in a cruel or arbitrary way; often associated with dictatorial leadership.

Stanley Milgram

Stanley Milgram was a psychologist best known for his landmark experiments on obedience to authority figures, conducted in the 1960s.

Obedience

The act of following orders or directions from an authority figure without question.

Learner

An individual engaged in acquiring knowledge, skills, attitudes, or competencies from study, instruction, or experience.