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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.
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: Comet Sub 1 Sub 2 Foreign Source Income 0 $4,050,000 4,190,000 Foreign U.S. Source Income Tax Income Paid $ 800,000 0 196,000 $ 394,000 612,500 1,285,000 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? Complete this question by entering your answers in the tabs below. Required A Required B If Comet and its two subsidiaries file a consolidated U.S. tax return, compute consolidated income tax. (Do not round any intermediate division.) Consolidated income tax
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