D is corrent. The requirement is to determine the stock ownership requirement that must be satisfied to enable Monahan Corp. to elect to file a consolidated return that includes Zimmerman Corp. For Monahan and Zimmerman to qualify for filing a consolidated tax return, Monahan must directly own stock possessing at least 80% of the total voting power, and at least 80% of the total value of Zimmerman stock.
A is incorrect. The requirement is at least 80% ownership.
B is incorrect. The requirement is at least 80% ownership.
C is incorrect. The requirement is at least 80% ownership.
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