Michigan Motors is a U S corporation with $1 billion of U S source income In addition, Michigan Motors owns 60 of Detroit Parts, a U S corporation with a total of $200 million of U S source in come, and 100 of Air Paris, a French corporation that has $500 million of French source income Neither Det...

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Michigan Motors is a U.S. corporation with $1 billion of U.S.-source income. In addition, Michigan Motors owns

Question:

Michigan Motors is a U.S. with $1 billion of U.S.-source income. In addition, Michigan Motors owns 60% of Detroit Parts, a U.S. with a total of $200 million of U.S.-source in- come, and 100% of Air Paris, a French that has $500 million of French-source income. Neither Detroit Parts nor Air Paris repatriated any earnings in the current year. Assume no book tax differences except those caused by differences in consolidation requirements.
a. How much income will Michigan Motors report on its ?
b. How much taxable income will Michigan Motors report on its U.S. tax return? Consolidated Income Statement
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