Choice a is incorrect per the above rules d cannot

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Unformatted text preview: ments is correct with respect to the companies' ability to file a consolidated return? a. b. c. 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 Explanation 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...
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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.

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