The Parent consolidated group reports the following results for the tax year. Entity Income or Loss Parent $16,200 Sub1 (1,620) Sub2 6,480 Sub3 3,240 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 $24,300 and the total consolidated tax liability is $5103. 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?
The Parent consolidated group reports the following results for the tax year. Entity Income or Loss Parent $16,200 Sub1 (1,620) Sub2 6,480 Sub3 3,240 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 $24,300 and the total consolidated tax liability is $5103. 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?
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 tax year.
|
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 $24,300 and the total consolidated tax liability is $5103.
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:Entity
Income or Loss
Parent
Sub1
$
Sub2
$
Sub3
%24
%24
%24
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