A TP invests $300,000 in a city of Providence (municipal) bonds that pays 7% interest. Alternatively, he could have invested the $300,000 in a bond recently issued by Ocean State Corporation, Inc (corporate bond) that pays 11% interest with similar risk as the city of Providence bond. Assume that the TP's marginal tax rate is 35%.

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?