When the parent acquires 51% of a subsidiary U.S.corporation,the subsidiary can join the consolidated financial statements,but not the consolidated tax return of the parent.

Question

Quizplus · Accepted Answer

When a parent company acquires 51% or more of a subsidiary's voting stock, the subsidiary becomes a consolidated subsidiary and its financial statements are included in the parent company's consolidated financial statements. However, the subsidiary is not included in the parent company's consolidated tax return unless the parent company elects to file a consolidated tax return.

When the Parent Acquires 51% of a Subsidiary U