Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 43

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.