Which of the following is eligible to file Federal income tax returns on a consolidated basis?
A) U.S. corporation engaged in the oil and gas industry.
B) Japanese corporation engaged in multinational operations, including two-thirds of its activities in the U.S.
C) Japanese corporation engaged in multinational operations, including one-third of its activities in the U.S.
D) Limited liability company operating exclusively in Texas.

Question

Quizplus · Accepted Answer

Only a U.S. corporation that meets certain criteria, including having a common parent corporation and 80% or more of its voting stock owned by the parent and other subsidiaries, can file Federal income tax returns on a consolidated basis. The other options are not eligible for consolidated filing.

Which of the Following Is Eligible to File Federal Income