The MaMa consolidated group reports the following results for the tax year. Determine each members...
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Accounting
The MaMa consolidated group reports the following results for the tax year. Determine each members share of the consolidated tax liability, assuming that the members all have consented to use the relative taxable income tax-sharing method. Dollar amounts are listed in millions, and a 35% marginal income tax rate applies to all of the entities.
MaMaCo
SisOne
SisTwo
SisThree
Consolidated
Ordinary income
$600
$200
$ 60
($30)
$830
Capital gain/loss
0
0
20
(5)
15
1231 gain/loss
130
0
(55)
0
75
Separate taxable incomes
$730
$200
$ 25
($30), with a $5 capital loss carryover
Consolidated taxable income
$920
Consolidated tax liability
$322
Energy tax credit, from SubOne
(10)
Net tax due
$312
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