Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 31

Which of the following is not a reason for two companies to file separate tax returns
A) The parent owns 68 percent of the subsidiary.
B) They have no intra-entity transactions.
C) Intra-entity dividends are tax-free only on separate returns.
D) Neither company historically has had an operating tax loss.