Solution-Compute consolidated income tax

Compute consolidated income tax

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Reference no: EM132797362

Problem - Comet operates solely within the United States. It owns two subsidiaries conducting business in the United States and several foreign countries. Both subsidiaries are U.S. corporations. This year, the three corporations report the following:

	Foreign Source Income	U. S. Source Income	Foreign Income Tax Paid
Comet	0	$800,000	0
Sub 1	$4,050,000	196,000	$394,000
Sub 2	4,190,000	612,500	1,285,000

Required -

a. If Comet and its two subsidiaries file a consolidated U.S. tax return, compute consolidated income tax.

b. What is the aggregate tax of the group if the three corporations file separate U.S. tax returns?

Reference no: EM132797362

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Compute consolidated income tax

Reference no: EM132797362

Reference no: EM132797362

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