California Schedule R - Apportionment And Allocation Of Income

Election to File a Unitary Taxpayers’ Group Return and List of Affiliated Corporations

Schedule R-7

This election is an integral part of the return of all taxpayers participating in the election, and must be filed annually with Schedule R. Signing

the return is an acknowledgement that the key corporation and its electing affiliates agree to comply with the following terms and conditions:

Each of the taxpayers listed in Schedule R-7, Part 1, hereby elect to file a single unitary taxpayers’ group return. The unitary taxpayers’ group return constitutes the

return for each member of the electing group and satisfies the requirement of each electing member to file its own return.

Each corporation that elects to file a group return agrees to be bound by the terms and conditions specified in this schedule and its instructions. The filing of its group

return indicates acceptance of all terms and conditions. To be eligible, each corporation must: 1) be a taxpayer required to file a return in California, 2) be a member of a

single unitary group for its entire taxable year, 3) have the same taxable year as the key corporation or have a taxable year that is wholly included within the taxable year

of the key corporation, and 4) have the same statutory filing date as the key corporation for the taxable year.

The key corporation must file the unitary taxpayers’ group return. With the initial return and thereafter, any payment of taxes for the income year shall be made using the

key corporation’s California corporate number as designated below. The key corporation must be taxable in California and, where applicable, be the parent corporation. If

the parent corporation is not a California taxpayer, the key corporation should be the taxpayer with the largest property factor numerator in California. For the election to

be valid, the key corporation’s powers, rights, and privileges must not be suspended or forfeited. The key corporation agrees to act as surety and agent for each

member of the group. In addition, all electing members agree that subsequent adjustments to the liability of the members of the group may be assessed, billed, or paid

to the key corporation on behalf of its members, either in the name of the key corporation or the name of the members. Adjustments to the liability of the members of

the group will ordinarily be reflected in a single notice. However, supplemental schedules reflecting the adjusted liability of each member will be provided upon request.

Waiver of a statute of limitations (SOL) by the key corporation will waive the SOL for all electing member corporations. If the key corporation does not fulfill its

obligation to pay tax or act on behalf of its members, each member may be independently assessed or billed for its own tax liability. If that becomes necessary, each

member will generally be credited with taxes previously paid in accordance with the member’s self-assessed tax liability (see Legal Ruling 95-2). It is the responsibility

of the members of the group to assure that amounts paid by one member on behalf of another are properly accounted for between the members. For electing members

subject to the franchise tax, the liability for each electing corporation cannot be less than the minimum tax. See General Information N.

The election is binding on all members for all matters for the taxable year of the election. If some or all of the corporations included in the election to file a unitary

taxpayers’ group return are later determined not to be members of the unitary group of the key corporation, the key corporation and electing members agree that any

subsequent adjustment for any and all members included in the original group return may still be assessed, billed, or paid by the key corporation.

The election remains in effect for the payment of estimated tax and tax paid with an extension of time to file for the following year by the key corporation on behalf of

the group, unless notice of termination of the election is provided to the Franchise Tax Board on or before the time of payment.

Part 1

List of Taxpayers Making Election to File a Single Unitary Taxpayers’ Group Tax Return. Attach additional sheets if necessary.

Electing taxpayer corporation

Federal employer

California corporation

identification number

Total self-assessed tax

(Enter as much of the true legal name as possible. Use

number

(FEIN)

abbreviations only if the abbreviation is part of the legal name.)

(Key corporation)

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 1 2

Total

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 1 2

Part 2

List each affiliated corporation not listed in Part 1. A corporation is an affiliated corporation for this purpose if it is a member of the same commonly controlled

group (see FTB Pub. 1061 for more information). All affiliated corporations should be listed whether or not they are California taxpayers or are unitary with the

key corporation. Include the California corporation number for each taxpayer. If the California corporation number is not available, then include the federal

employer identification number.

List of Affiliates Not Included in Part 1. Attach additional sheets if necessary.

Does this corporation

California

Is this corporation

file a California tax return

Was this corporation

Affiliate corporation’s name

corporation number

unitary with the

on a different fiscal year

acquired or disposed of