I need the attached discussion question which is in two parts, done by Wednesday, November 11. Please provide at least 2 paragraphs per part. If possible use GAAP references.

"Consolidated Financial Statements - Ownership, Income Taxes, and Legal Reorganizations" Determine the fundamental advantages to a business combination of filing a consolidated tax return. Next, analyze the main reasons why members of a business combination file separate returns. Provide a rationale for your response. Differentiate between the two (2) categories of liabilities (i.e., fully secured and partially secured) that have priority in business liquidation. Analyze the main reasons why unsecured creditors favor reorganizing an insolvent company rather than forcing it into liquidation. Provide support for your rationale. Determine the fundamental advantages to a business combination of filing a consolidated tax return. Next, analyze the main reasons why members of a business combination file separate returns. Provide a rationale for your response. There are several fundamental advantages to a business combination of filing a consolidated tax return this can include the following: Centralizing the reporting, planning and paying of taxes (Carmichael, Whittington & Graham, 2007). If all members or firms of a business are profitable and few intra-entry transactions happen then they may try to file separate tax return because separate returns are mandatory for foreign subsidiaries and for domestic corporations not meeting the 80 percent ownership rule. According to the GAAP policy, Canadian and Mexican subsidiaries can qualify for treatment as domestic companies for purposes of filing a consolidated return. A company may still elect to file separately even if it meets the conditions for inclusion within an affiliated group. Lastly, by filing separate returns, it provides the members or firms more flexibility in the selection of choice of accounting methods and fiscal tax years. Differentiate between the two (2) categories of liabilities (i.e., fully secured and partially secured) that have priority in business liquidation. Analyze the main reasons why unsecured creditors favor reorganizing an insolvent company rather than forcing it into liquidation. Provide support for your rationale. The two categories of liabilities are fully secured and partially secured which both have priority in business liquidation. Partially secured liabilities are collateralized assets in which where net realizable value is less than the liability. Fully secured liabilities are collateralized y assets in which net realizable values may be equal or exceed the liability. The fully secured creditors have an obligation from an insolvent company but hold a collateral interest in assets that is excess value of the debt. In addition, unsecured creditors have no collateral interest in assets from an insolvent company and can only hope to collect after the all secured interest have been satisfied. Unsecured creditors favor reorganizing an insolvent company rather than forcing it into liquidation because they have not collateral interest in assets, so they have fewer chances to recover their credit or money due to they have collected after the all secured interest have been satisfied (Delaney & Whittington, 2012). References: Carmichael, D.R., Whittington, O.R. & Graham, L (2007). Accountants' Handbook, Volume 1: Financial Accounting and General Topics (11th ed.). USA: John Wiley & Sons. Delaney, P.R. & Whittington, O.R. (2012). Wiley CPA Examination Review, Outlines and Study Guides. USA: John Wiley & Sons