Evans & sons, inc., received notification from a local attorney that the company was being sued for $5,000,000 for patent infringement. a review of the situation by the company’s ceo led to the conclusion that evans & sons had indeed infringed upon the other company’s patented product. nonetheless, the ceo thought the amount of $5,000,000 was excessive and intended to litigate the issue. how should the lawsuit be reported in evans & sons’ annual report?

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?