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D Corp. had investments, direct and indirect, in several subsidiaries: • E Co. i

ID: 2474501 • Letter: D

Question

D Corp. had investments, direct and indirect, in several subsidiaries:

• E Co. is a domestic firm in which D Corp. owned a 90% interest
• F Co. is a domestic firm in which D Corp. owned 60% and E Co. owned 30%
• G Co. is a domestic firm wholly owned by E Co.
• H Co. is a foreign subsidiary in which D Corp. owned a 90% interest
• I Co. is a domestic firm in which D Corp. owned 50% and G Co. owned 25%

Which of these subsidiaries may be included in a consolidated income tax return?

A.

E, F, G, H, and I.

B.

E, G, H, and I.

C.

E and F.

D.

E, F, G, and H.

E.

E, F, and G.

A.

E, F, G, H, and I.

Explanation / Answer

Answer is option E