Identify which of the following statements is false.
A. A controlled group must apportion certain tax benefits among its members.
B. There are three categories of control groups: parent-subsidiary, brother-sister, and combined.
C. The controlled group test is applied on December 31.
D. Brown Corporation owns 60% of Clark Corporation and 65% of Davis Corporation. Davis Corporation owns 10% of Clark Corporation, and Clark Corporation owns 10% of Davis Corporation. The remaining stock is owned by an individual shareholder. Brown, Davis, and Clark Corporations are a parent-subsidiary controlled group.
Answer: D
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