In a two-year period, suppose Gloria has $10,000 in income in year 1 and $4,300 in income in year 2. In order to maintain her optimal consumption of $8,000 in year 1 and $6,500 in year 2, she can borrow or lend at a rate of 10 percent.
Required:
1. If Gloria's income stream changes such that she earns $3,000 in Year 1 and $13,000 in Year 2, the budget line will .
A. remain unchanged.
B. pivot about the endowment point.
C. pivot about the intercept on the axis representing year 2 income.
D. shift out away from the origin.

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?