Identify Which of the Following Statements Is False

Identify which of the following statements is false.

A) A controlled group must apportion certain tax benefits among its members.
B) There are three categories of control groups: parent- subsidiary, brother- sister, and combined.
C) The controlled group test is applied on December 31.
D) Brown Corporation owns 60% of Clark Corporation and 65% of Davis Corporation. Davis Corporation owns 10% of Clark Corporation, and Clark Corporation owns 10% of Davis Corporation. The remaining stock is owned by an individual shareholder. Brown, Davis, and Clark Corporations are a parent- subsidiary controlled group.