-Which of the following statements is true?
A) Alpha and Beta must file a consolidated income tax return, but must exclude Gamma from the consolidated return.
B) Alpha, Beta, and Gamma must file a consolidated income tax return.
C) Alpha, Beta, and Gamma must file separate income tax returns because the ownership of Beta is less than 100%.
D) Alpha, Beta, and Gamma will probably not file a consolidated income tax return.
E) Alpha, Beta, and Gamma may file separate income tax returns or a consolidated income tax return.

Question

-Which of the following statements is true?
A) Alpha and Beta must file a consolidated income tax return, but must exclude Gamma from the consolidated return. 
B) Alpha, Beta, and Gamma must file a consolidated income tax return. 
C) Alpha, Beta, and Gamma must file separate income tax returns because the ownership of Beta is less than 100%. 
D) Alpha, Beta, and Gamma will probably not file a consolidated income tax return. 
E) Alpha, Beta, and Gamma may file separate income tax returns or a consolidated income tax return.

Quizplus · Accepted Answer

Alpha, Beta, and Gamma may choose to file either separate income tax returns or a consolidated income tax return if they meet the requirements for consolidation, such as having a common parent company and meeting ownership thresholds.

-Which of the Following Statements Is True