The losses of a consolidated group member are subject

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44. The losses of a consolidated group member are subject to both the SRLY rules and a § 382 limitation. When both limitations apply, the § 382 restrictions override the SRLY rules for this affiliate. a. True b. False ANSWER: True
RATIONALE: Section 382 limits prevail over SRLY restrictions, under the “overlap rule.” POINTS: 1 DIFFICULTY: Easy
Chapter 08 - Consolidated Tax Returns LEARNING OBJECTIVES: SCPE.HRMY.15.LO: 8-08 - LO: 8-08 NATIONAL STANDARDS: United States - BUSPORG: Analytic STATE STANDARDS: United States - AK - AICPA: FN-Measurement - AICPA: FN-Measurement KEYWORDS: Bloom's: Comprehension OTHER: Time: 2 min. 45. A Federal consolidated filing group aggregates its separate charitable contributions for the tax year, deductions for which then are subject to an annual limitation of 10% of consolidated taxable income.
POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: SCPE.HRMY.15.LO: 8-09 - LO: 8-09 NATIONAL STANDARDS: United States - BUSPORG: Analytic STATE STANDARDS: United States - AK - AICPA: FN-Measurement - AICPA: FN-Measurement KEYWORDS: Bloom's: Comprehension OTHER: Time: 2 min. 46. The foreign tax credit of a consolidated group can be greater than the sum of the credits of the group members when filing separately.
POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: SCPE.HRMY.15.LO: 8-03 - LO: 8-03 SCPE.HRMY.15.LO: 8-09 - LO: 8-09 NATIONAL STANDARDS: United States - BUSPORG: Analytic STATE STANDARDS: United States - AK - AICPA: FN-Measurement - AICPA: FN-Measurement KEYWORDS: Bloom's: Comprehension OTHER: Time: 2 min. 47. A penalty can be assessed by the IRS if the parent corporation does not keep good records to support the computation of a subsidiary’s stock basis.
POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: SCPE.HRMY.15.LO: 8-10 - LO: 8-10 NATIONAL STANDARDS: United States - BUSPORG: Analytic
Chapter 08 - Consolidated Tax Returns STATE STANDARDS: United States - AK - AICPA: FN-Reporting KEYWORDS: Bloom's: Knowledge OTHER: Time: 2 min. 48. Which of the following potentially is a disadvantage of electing to file a Federal consolidated corporate income tax return? a. The consolidated ACE adjustment could be reduced for the filing group. b. The taxation of intercompany dividends is not eliminated. 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 § 1231 loss of one member is not offset against the § 1231 gain of another member of the group. ANSWER: b
POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: SCPE.HRMY.15.LO: 8-03 - LO: 8-03 NATIONAL STANDARDS: United States - BUSPORG: Analytic STATE STANDARDS: United States - AK - AICPA: FN-Reporting KEYWORDS: Bloom's: Knowledge OTHER: Time: 5 min.

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