Boulder Corporation owns all of the stock of PebbleCo, so together they constitute a Federal affiliated group and a parentsubsidiary controlled group By completing the following table, delineate for Boulder's tax department some of the effects of an election to file Federal consolidated income tax returns Situation If the Group Files a Consolidated Return If Separate Income Tax Returns Continue to Be Filed a What amount of the $1,000,000 cash dividend paid by PebbleCo to Boulder is taxable $ $ b Taxable income for both group members this year is $50,000 each What is the income tax Assume that Boulder is allocated the 15 tax bracket $ $ c Boulder's tax liability is $95,000, and Pebble's liability totals $75,000 For what amount is Boulder liable $ $

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Boulder Corporation owns all of the stock of PebbleCo, so together they constitute a Federal affiliated group and a parentsubsidiary controlled group. By completing the

Boulder Corporation owns all of the stock of PebbleCo, so together they constitute a Federal affiliated group and a parentsubsidiary controlled group. By completing the following table, delineate for Boulder's tax department some of the effects of an election to file Federal consolidated income tax returns.

	Situation	If the Group Files a Consolidated Return	If Separate Income Tax Returns Continue to Be Filed
a.	What amount of the $1,000,000 cash dividend paid by PebbleCo to Boulder is taxable?	$	$

b.	Taxable income for both group members this year is $50,000 each. What is the income tax? Assume that Boulder is allocated the 15% tax bracket.	$	$

c.	Boulder's tax liability is $95,000, and Pebble's liability totals $75,000. For what amount is Boulder liable?	$	$