Which of the following tax effects becomes more restrictive if an election is made to file a group's Federal corporate income tax returns on a consolidated basis?

a. Choice of members' tax accounting methods
b. Use of the lower tax rate brackets.
c. Use of the $40,000 AMT exemption.
d. Members who are liable for the consolidated tax liability.


d
RATIONALE: The others are treated alike even if no election to consolidate is made, because the controlled group rules also apply. Consolidated group members are jointly and severally liable for the consolidated tax liability.

Business

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