Identify which of the following statements is true.
A)A corporation may be required to file a separate return and file with an affiliated group in the same calendar year.
B)When a corporation joins in filing a consolidated return, taxable income of the member is combined with other members' taxable income prior to any adjustments.
C)If a corporation becomes a member of an affiliated group within the first thirty days of the corporation's tax year, the corporation can elect not to file a short-period tax return.
D)All of the above are false.

Question

Quizplus · Accepted Answer

A corporation may indeed be required to file a separate return for part of the year and then file with an affiliated group if it becomes part of that group later in the same year. This situation can arise if the corporation's ownership or affiliation status changes during the year.

Identify Which of the Following Statements Is True