What is one benefit of a consolidated return for corporations?

One significant benefit of a consolidated return for corporations is that it simplifies bookkeeping by merging reports. When corporations file a consolidated return, they combine the financial results of all affiliated companies into a single tax return. This process reduces the complexity of preparing separate returns for each entity, streamlines the financial reporting process, and makes it easier for the corporations to manage their financial data. This simplification can also lead to cost savings in terms of accounting and administrative resources.

The other options do not accurately reflect the nature of consolidated returns. For example, a consolidated return does not guarantee a complete tax exemption; rather, it allows for the netting of income and losses between subsidiaries, which may reduce overall taxable income but does not eliminate taxes altogether. Similarly, consolidated filings do not inherently allow for higher gross income reporting; the aim is to present a comprehensive financial overview, not to inflate incomes. Lastly, while losses from one subsidiary can potentially offset profits from another within a consolidated return, individual reporting of subsidiaries' losses does not capture the essence of consolidated reporting, which focuses on the aggregate financial position.