Identify which of the following statements is true.
A)To be part of an affiliated group, a corporation must be at least 80% directly owned by another group member.
B)Only common stock is considered when determining if the 80% ownership test is met for affiliated group eligibility.
C)An affiliated group electing to file a consolidated return may be composed of as few as two corporations.
D)All of the above are false.

Question

Quizplus · Accepted Answer

Choice A is false because the ownership requirement for affiliated group eligibility is at least 80% owned (directly or indirectly) by the parent corporation. Choice B is false because both common and preferred stock are considered when determining the 80% ownership test. Choice C is true because an affiliated group electing to file a consolidated return may be composed of as few as two corporations. Choice D is false because at least one of the statements (Choice C) is true.

Identify Which of the Following Statements Is True