Parent and Junior Form a Unitary Group of Corporations

Parent and Junior form a unitary group of corporations. Parent is located in a state with an effective tax rate of 3%,
While Junior's effective tax rate is 9%. Acting in concert to reduce overall tax liabilities, the group should:

A) Execute an intercompany loan, such that Junior pays deductible interest to Parent.
B) Have Parent charge Junior an annual management fee.
C) Shift Parent's high­cost assembly and distribution operations to Junior.
D) All of the above are effective income-shifting techniques for a unitary group.
E) None of the above is an effective income-shifting technique for a unitary group.