32. Brown Corporation, a wholesale corporation, has a taxable income of $350,000. Brown Corporation's regular tax liability is A) $73,500. B) $84,000. C) $100,000 D) $136,000 33. Identify which of the following statements is false. A) Brown Corporation owns 60% of Clark Corporation and 65% of Davis Corporation. Davis Corporation owns 10% of Clark Corporation, and Clark Corporation owns 10% of Davis Corporation. The remaining stock is owned by an individual shareholder. Brown, Davis, and Clark Corporations are a parent-subsidiary controlled group. B) There are three categories of control groups: parent-subsidiary, brother-sister, and combined. C) The controlled group test is applied on December 31. D) A controlled group must apportion certain tax benefits among its members. 34. Which of the following items is a temporary difference between tax income and financial accounting income? A) production activities deduction B) proceeds on life insurance on a key executive C) dividends-received deduction D) depreciation 35. Omron Corporation has the following income and expenses for the tax year: $150,000 500,000 Gross profit on sales Expenses: Dividends received from less-than-20%-owned domestic corporations: 50,000 What is Omron's net operating loss? A) $500,000 B) $494,000 C) $325,000 D) $300,000