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    Why companies that file consolidated taxes allocate tax exp?

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    Why do companies that file consolidated tax returns often choose to allocate tax expense to the individual affiliates? Explain.

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    Businesses that report their results as a consolidated group and so have a consolidated tax provision, also often prepare stand-alone or "carve out" separate financial statements for individual companies in the consolidated group or subsets of the consolidated group. Southern Company (SO) owns several ...

    Solution Summary

    Your discussion is 156 words and a reference and gives reasons for consolidated tax returns.