a. What is the group's consolidated taxable income and consolidated tax liability? If the relative taxable income method, the consolidated taxable income is 14,500✔and the total consolidated tax liability is 5,075 X. b. If the Parent group has consented to the relative taxable income method, how will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 8-24 (LO. 5)
The Parent consolidated group reports the following results for the tax
year.
Entity
Parent
Sub1
Sub2
Sub3
Income or Loss
$10,000
(1,500)
4,000
2,000
Do not round any division in your computations. If required, round
your answers to nearest whole dollar. If an amount is zero, enter
"0".
Canon
a. What is the group's consolidated taxable income and consolidated tax
liability?
If the relative taxable income method, the consolidated taxable income is
14,500✔ and the total consolidated tax liability is
5,075 X.
b. If the Parent group has consented to the relative taxable income
method, how will the consolidated tax liability be allocated among the
Parent and Subsidiaries 1, 2, and 3?
Transcribed Image Text:Exercise 8-24 (LO. 5) The Parent consolidated group reports the following results for the tax year. Entity Parent Sub1 Sub2 Sub3 Income or Loss $10,000 (1,500) 4,000 2,000 Do not round any division in your computations. If required, round your answers to nearest whole dollar. If an amount is zero, enter "0". Canon a. What is the group's consolidated taxable income and consolidated tax liability? If the relative taxable income method, the consolidated taxable income is 14,500✔ and the total consolidated tax liability is 5,075 X. b. If the Parent group has consented to the relative taxable income method, how will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3?
Do not round any division in your computations. If required, round
your answers to nearest whole dollar. If an amount is zero, enter
"0".
a. What is the group's consolidated taxable income and consolidated tax
liability?
If the relative taxable income method, the consolidated taxable income is
14,500 ✓ and the total consolidated tax liability is
5,075 X.
b. If the Parent group has consented to the relative taxable income
method, how will the consolidated tax liability be allocated among the
Parent and Subsidiaries 1, 2, and 3?
Entity
Parent
Sub1
Sub2
Sub3
$
Income or Loss
3,171 X
0
1,268.75 X
Transcribed Image Text:Do not round any division in your computations. If required, round your answers to nearest whole dollar. If an amount is zero, enter "0". a. What is the group's consolidated taxable income and consolidated tax liability? If the relative taxable income method, the consolidated taxable income is 14,500 ✓ and the total consolidated tax liability is 5,075 X. b. If the Parent group has consented to the relative taxable income method, how will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3? Entity Parent Sub1 Sub2 Sub3 $ Income or Loss 3,171 X 0 1,268.75 X
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