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 U.S.corporation's § 401(k)plan.
C)A partnership organized in Germany.
D)A corporation that operates in seven different U.S.states.

Question

Quizplus · Accepted Answer

A corporation that operates in seven different U.S. states is eligible to join in a Federal consolidated return. This is because the rules state that a parent corporation can include all of its subsidiaries in a consolidated return if the parent company directly owns at least 80% of the subsidiaries' total voting power and value of their stock. As long as the corporation meets this requirement and is a U.S. company, it can join in a Federal consolidated return. The other options listed are not eligible to join a Federal consolidated return for various reasons.

Which of the Following Is Eligible to Join in a Federal