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.

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?

Determine the $$$ amount for each situation "If the Group Files a Consolidated Return" & "If Separate Income Tax Returns Continue to Be Filed".