Which of the Following Is Not Generally a Disadvantage of Filing

question 88

Multiple Choice

Which of the following is not generally a disadvantage of filing Federal corporate income tax returns on a consolidated basis?

• A)Compliance costs usually are higher when a consolidation election is in effect.
• B)Realized losses from transactions between affiliates are not recognized immediately.
• C)Capital gains from one affiliate can be offset by the capital losses from another.This can reduce the tax liabilities of the group as a whole.
• D)The election generally is binding for future tax years.