Which of the following items is not computed on a group basis for a Federal consolidated income tax return?
A) Dividends received deduction.
B) Cost recovery deduction.
C) Charitable contributions.
D) Net capital losses.

Question

Quizplus · Accepted Answer

The cost recovery deduction (depreciation) is computed on an individual entity basis rather than on a consolidated group basis for Federal income tax purposes. Each entity calculates its own depreciation deductions based on its assets, even when part of a consolidated group.

Which of the Following Items Is Not Computed on a Group