For which of the followingtax-related matters can an affiliatedgroup's parent corporation act as thegroup's agent?

a. Consent by a subsidiary corporation to the filing of a consolidated tax return.

b. Changing a subsidiarycorporation's accounting method.

c. Corresponding with the IRS during its audit regarding a subsidiarycorporation's transaction that affects thegroup's consolidated taxable income.

d. Requesting an extension of time to file a consolidated tax return.

A. Only a and c aretax-related matters that allow an affiliatedgroup's parent corporation to act as thegroup's agent because the parent files the initial consent for allowing subsidiaries to file consolidated returns and they also work directly with the IRS in all correspondence following that initial consenting return.

B. None of thetax-related matters allow an affiliatedgroup's parent corporation to act as thegroup's agent because each entity is considered a standalone entity fortax-related matters such as those listed.

C. Onlyb, c, and d aretax-related matters which the parent corporation can act as thegroup's agent. Each subsidiary corporation must first consent to participate in a consolidatedreturn; thus giving the parent the right to act on their behalf for the other three actions.

D. All of thetax-related matters allow an affiliatedgroup's parent corporation to act as thegroup's agent since once a subsidiary becomes80% or more owned by a parentcorporation, alltax-related matters must be answered through the parent corporation.