Which of the following is eligible to join in a Federal consolidated return?
A)A sole proprietor with annual sales of more than $50 million.
B)A limited liability company.
C)A company organized in Germany.
D)A corporation that operates in seven different U.S. states.
E)None of the above can join a Federal consolidated group.

Question

Quizplus · Accepted Answer

Only corporations are eligible to join in a Federal consolidated return, and the corporation mentioned in option D, operating in seven different U.S. states can join a Federal consolidated group. The other options such as sole proprietorship, limited liability company, or a company organized in a different country are not eligible for consolidation.

Which of the Following Is Eligible to Join in a Federal