D is corrent. A dividend distribution from one member to another member of an affiliated group during a consolidated return year is eliminated in determining consolidated taxable income. Note, that if a consolidated return is not filed, dividends received from an affiliated corporation (80% or more ownership) are eligible for a 100% dividends-received deduction.
A is incorrect. The intercompany dividend would be eliminated in the consolidated return.
B is incorrect. The intercompany dividend would be eliminated in the consolidated return.
B is incorrect. The intercompany dividend would be eliminated in the consolidated return.
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