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

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

FINANCIAL ACCOUNTING
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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The Parent consolidated group reports the following results for the 2021 tax year. Entity Income or Loss $78,600 Parent Sub1 (7,860) Sub2 31,440 Sub3 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 $ and
Transcribed Image Text:The Parent consolidated group reports the following results for the 2021 tax year. Entity Income or Loss $78,600 Parent Sub1 (7,860) Sub2 31,440 Sub3 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 $ and
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