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Grand Corporation owns all of the stock of Junior, Ltd., a corporation that has been declared bankrupt and holds no net assets. Junior still owes
Grand Corporation owns all of the stock of Junior, Ltd., a corporation that has been declared bankrupt and holds no net assets. Junior still owes $1 million to Wholesale, Inc., one of its suppliers, and $2.5 million to the IRS for unpaid Federal income taxes. Grand and Junior always have filed Federal income tax returns on a consolidated basis. What is Grands exposure concerning Juniors outstanding income tax liabilities?
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