Exercise 8-25 (Algorithmic) (LO. 6) Clifton Corporation acquired all of the outstanding Gillion stock on...
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Exercise 8-25 (Algorithmic) (LO. 6) Clifton Corporation acquired all of the outstanding Gillion stock on January 1, Year 1, for $4,018,000. The parties immediately elected to file consolidated Federal income tax returns. Gillion reported a Year 1 taxable loss of $602,700, but it generated $803,600 of taxable income in Year 2 and $401,800 in Year 3. Gillion paid a $200,900 dividend to Clifton in Year 2 and a $6,027 in Year 3. Compute Clifton's stock basis in Gillion on the last day of each of the indicated tax years
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