$1.$ Which of the following is not generally a disadvantage of filing Federal corporate income tax returns on a consolidated basis:

a$.$ Net capital losses from one affiliate can offset the capital gains from another. This can reduce the tax liabilities of the group as a whole.

b$.$ Realized losses from transactions between affiliates are not recognized immediately.

c$.$ Compliance costs usually are higher when a consolidation election is in effect.

d$.$ The election generally is binding for future tax years.

$2.$The tax treatment of reorganizations almost parallels the Federal income tax treatment for like$-$kind exchanges.

a$.$ True

b$.$ False