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:

Monarch Butterflies

A species of butterfly known for its striking orange and black wings and remarkable long-distance migration from North America to central Mexico.

Light-sensitive Clock

A biological mechanism in organisms that allows them to respond to the timing and duration of light, influencing their behavior and physiology.

Antennae

Sensory appendages on the heads of insects and some other arthropods, used for sensing the environment, including smells and sounds.

Butterflies

Insects of the order Lepidoptera, characterized by their colorful wings and the role they play in pollination and as indicators of ecosystem health.