This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ments is correct with respect to the companies' ability to file a consolidated return?
d. A, C, and D may file as a group.
A and C may not file as a group, and B and D may not file as a group.
A and C may file as a group, and B and D may file as a group.
A and C may file as a group, but B and D may not file as a group. CPA-05282
RULE: Filing a consolidated return is a privilege afforded to affiliated groups of corporations (Code
Sections 1501 and 1504(b)), and it can only be filed if all of the affiliated corporations consent to such a
filing. An affiliated group has ownership through a common parent. The common parent must directly
own at least 80% of the voting power of at least one of the affiliated (includible) corporations and at least
80% of the value of the stock of that corporation, and the other corporations not controlled by the parent
must be controlled under the 80% ownership test by an includible corporation. Not all corporations are
allowed the privilege of filing a...
View Full Document
This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.
- Fall '10
- The Land