-Which of the following statements is true?
A) Delta and Sigma must file a consolidated income tax return, but must exclude Pi from the consolidated return.
B) Delta, Sigma, and Pi must file a consolidated income tax return.
C) Delta, Sigma, and Pi must file separate income tax returns because the ownership of Sigma and Pi is less than 100%.
D) Delta, Sigma, and Pi will probably not file a consolidated income tax return.
E) Delta, Sigma, and Pi may file separate income tax returns or a consolidated income tax return.

Question

-Which of the following statements is true?
A) Delta and Sigma must file a consolidated income tax return, but must exclude Pi from the consolidated return. 
B) Delta, Sigma, and Pi must file a consolidated income tax return. 
C) Delta, Sigma, and Pi must file separate income tax returns because the ownership of Sigma and Pi is less than 100%. 
D) Delta, Sigma, and Pi will probably not file a consolidated income tax return. 
E) Delta, Sigma, and Pi may file separate income tax returns or a consolidated income tax return.

Quizplus · Accepted Answer

Delta, Sigma, and Pi may choose to file either separate income tax returns or a consolidated income tax return if they meet the requirements for consolidation, such as having a common parent and meeting ownership thresholds.

-Which of the Following Statements Is True