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On January 1, 2020, Alpha corporation purchases 100% of the stock of Omega Corporation for $2,000,000. During the year, Omega corporation earns $300,000 of taxable

On January 1, 2020, Alpha corporation purchases 100% of the stock of Omega Corporation for $2,000,000. During the year, Omega corporation earns $300,000 of taxable income, $30,000 of tax-exempt income, and distributes $150,000 in dividends. Each company paid its own tax liability. What basis adjustment must Alpha corporation make at year end.

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