Question

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43. Which of the following corporations is entitled to join in a consolidated tax return without making a special election?

A) corporations exempt from tax under Sec. 501

B) real estate investment trusts

C) foreign corporations

D) closely held corporations

45. Which of the following events is an intercompany transaction?

A) a capital contribution

B) a parent corporation's sale of stock of a subsidiary corporation to a nonmember of the group

C) dividend payment received from a subsidiary corporation to its parent corporation; the subsidiary corporation is not an includible corporation

D) accrual of interest on a loan made by one group member to another group member; both group members use the accrual method of accounting

Answer 1

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Answer is highlighted in yellow: Both are individual questions, although both have been answered :) Solution: D) closely held corporations Answer: 43) Explanation: It is standardized. No explanation require. Answer: 45) D) accrual of interest on a loan made by one group member to another group member; both group members use the accrual method of accounting Explanation: It is standardized. No explanation require.