New York, Inc $$\begin{array} { l r } \text { New York } & \$ 628,000 \\\text { Brooklyn } & 246,000 \\\text { Queens } & ( 105,000 )\end{array}$$

New York, Inc. owns 100% of Brooklyn, Inc. and Queens, Inc. Taxable income for the three corporations for their first year was as follows: $$\begin{array} { l r } \text { New York } & \$ 628,000 \\\text { Brooklyn } & 246,000 \\\text { Queens } & ( 105,000 ) \end{array}$$ Which of the following statements is false?

A) Consolidated taxable income is $769,000.
B) If a consolidated return is filed, Queens, Inc. will receive immediate tax benefit from its operating loss.
C) If Brooklyn, Inc. is a foreign corporation, it can be part of a consolidated return.
D) The corporations are not required to file a consolidated tax return if they are an affiliated group; however, they may elect to do so.