XYZ is a subsidiary of NIT Corp. NIT Corp. is trying to decide if it should file a consolidated return. A disadvantage of filing consolidated returns is:

a) The filer has the ability to offset current losses with profits from an affiliated corporation.

b) Intercompany transactions can lead to the deferral of losses and bookkeeping

complications.

c) Dividends paid by one corporation to the other are completely (100%) excluded.

d) The time at which income from intercompany transfers is taxed is postponed.