Choice "C" is correct. A significant advantage of consolidated tax returns is the ability to offset gains and losses among group members as if they were a single taxpayer.
Choice "a" is incorrect. Corporations need not have audited financial statements issued on a consolidated basis to file a consolidated tax return.
Choice "d" is incorrect. 100% of dividends received by the parent are eliminated on a consolidated tax return.
Choice "b" is incorrect. The common parent must own directly or indirectly 80% of the total voting power of all corporations included in the consolidated tax return.
