New York, Inc. owns 100% of Brooklyn, Inc. and Queens, Inc. Taxable income for the three corporations for their first year was as follows:New York = $628,000Brooklyn = $246,000Queens = ($105,000)Which of the following statements is false?A. Consolidated taxable income is $769,000.B. If a consolidated return is filed, Queens, Inc. will receive immediate tax benefit from its operating loss.C. If Brooklyn, Inc. is a foreign corporation, it could be part of a consolidated return.D. The corporations are not required to file a consolidated tax return if they are an affiliated group; however, they may elect to do so.



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