Indianapolis corporation makes an equity-method investment in richmond inc. at a purchase price of $4.42 million cash, representing 30% (at book value) of richmond inc. during the year, richmond reports net income of $5,280,500 and indianapolis receives $877,500 of cash dividends from richmond. at the end of the year, the market value of indianapolis’s investment is $4.03 million. at year end, what does indianapolis corporation report on its balance sheet for its investment in richmond inc.? a. $5,126,650 b. $4,420,000 c. $5,740,900 d. $5,280,500 e. none of the above

The stock of grommet corporation, a u.s. company, is publicly traded, with no single shareholder owning more than 5 percent of its outstanding stock. grommet owns 95 percent of the outstanding stock of staple inc., also a u.s. company. staple owns 100 percent of the outstanding stock of clip corporation, a canadian company. grommet and clip each own 50 percent of the outstanding stock of fastener inc., a u.s. company. grommet and staple each own 50 percent of the outstanding stock of binder corporation, a u.s. company. which of these corporations form an affiliated group eligible to file a consolidated tax return?