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checking if these are correct Intercompany transactions of a consolidated group can be subject to a matching rule and an acceleration rule. a. Select either

checking if these are correct

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Intercompany transactions of a consolidated group can be subject to a "matching rule" and an "acceleration rule." a. Select either "Yes" or "No" to indicate whether the following intercompany transactions are subject to the matching and/or acceleration rules. Sales of assets among group members Yes Performance of services among group members No Net operating loss among group members Yes Interest revenue among group members No All intercompany transactions involving a markup in cost Yes Complete the following sentences regarding the matching and acceleration rules. Under the matching rule, the gain or loss realized on certain intercompany transactions is removed from the consolidated taxable income until the asset is sold to the parent corporation . The matching rule applies a one company with multiple divisions approach to intercompany transactions. Only gain recognition can be triggered under the acceleration rule when the transferor of the property joins the group or the consolidation election is terminated. b. As a tax planner structuring an intercompany transaction, when would it be beneficial to use either rule? Taking into account the time value of money, most taxpayers prefer to apply the matching rule to gains and the acceleration rule to gains

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