Taxation of Related Corporations $($see page $417$ of the study guide$)$: Eligible affiliated corporations can elect to file a consolidated return. Consolidating permits all of the following except:

a$.$ The profitable corporation to offset its income against losses of another corporation.

b$.$ Net capital losses of one corporation to offset capital gains of another.

c$.$ All consolidated profits to be exempt from federal income tax.

d$.$ The corporations to eliminate intercompany profits and losses.

Taxation of Related Corporations $($see page $418$ of the study guide$)$: A brother$-$sister controlled group exists if two or more corporations are owned by five or more persons $($individuals$,$ estates, or trusts$).$

Select one:

True

False