_____ Parrco and Subbco File a Consolidated Tax Return

Multiple Choice

_____ Parrco and Subbco file a consolidated tax return. Subbco issues separate financial statements. Subbco's income statement

A) Need not include income tax expense.
B) Must include income tax expense allocated from the parent.
C) Must include income tax expense allocated from the parent only if the subsidiary is partially owned and the unowned shares are publicly held.
D) Must include income tax expense allocated from the parent only if Parrco is publicly owned.
E) None of the above.