Which statement describes the effect of taxes on a traditional ira retirement account?

a. a traditional ira is tax exempt because the income earned is never taxed.
b. a traditional ira is tax deferred because the income earned isn’t taxed until the money is withdrawn.
c. a traditional ira is tax exempt because the income earned isn’t taxed until the money is withdrawn.
d. a traditional ira is a taxable account because the income earned is taxed when it is contributed.

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?