In Calculating the Voting Power and Market Value for Two

question 22

Multiple Choice

In calculating the voting power and market value for two or more corporations to file a consolidated tax return, preferred stock is included only if it

• A) is entitled to vote.
• B) is not limited and not preferred as to dividends.
• C) does have redemption rights beyond its issue price plus a reasonable redemption or liquidation premium and is convertible into the other class of stock.
• D) meets any of the above conditions.