Which of the Following Potentially Is a Disadvantage of Electing

question 9

Multiple Choice

Which of the following potentially is a disadvantage of electing to file a Federal consolidated corporate income tax return?

• A) The consolidated ACE adjustment could be reduced for the filing group.
• B) The taxation of intercompany dividends is not eliminated. Recognition of losses from certain intercompany transactions is deferred.
• C) The tax basis of investments in the stock of subsidiaries is unaffected by members contributing to consolidated taxable income.
• D) The § 1231 loss of one member is not offset against the § 1231 gain of another member of the group.