The Parent consolidated group reports the following results for the 2021 tax year.EntityParentIncome or Loss$78,600Sub1(7,860)Sub2Sub331,44015,720Do not round any division in your computations. If required, round your answers tonearest 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 $the total consolidated tax liability is $b. If the Parent group has consented to the relative taxable income method, how will theconsolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3?EntityIncome or LossParent$Sub1$Sub2$Sub3$HAand

Under consolidation, the tax liability of a consolidated group is allocated to the parent and…

Answered: Entity Income or Loss Parent $78,600…

Entity Income or Loss Parent $78,600 Sub1 (7,860) Sub2 31,440 Sub3 15,720 not round any division in your computations. If required arest whole dollar. If an amount is zero, enter "0".

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The Parent consolidated group reports the following results for the 2021 tax year.
Entity
Parent
Income or Loss
$78,600
Sub1
(7,860)
Sub2
Sub3
31,440
15,720
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 $
the total consolidated tax liability is $
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
Income or Loss
Parent
$
Sub1
$
Sub2
$
Sub3
$
HA
and

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