Which of the following is not an advantage of filing a consolidated income tax return?

Multiple Choice

a. The existence of deferred losses in ending inventory.

b. The ability to use net operating losses of one company to offset profits of another company.

c. The existence of intra-entity gross profit remaining in ending inventory.

d. Transfers of inventory at a transfer price above cost.

e. There is no difference between U.S. GAAP and tax accounting rules for dividends paid to a parent by an 85%-owned subsidiary.