You are an escrow officer in California. You open escrow for a
purchase transaction and meet with the buyer and seller.
The seller will finance all except the down payment and neither party
is represented by a real estate agent. The seller says to make the
escrow instructions as an AITD. The buyer asks to make the escrow
instructions as a wrap around mortgage.
Explain your response to the parties and tell them why.

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?