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Par owns 90.65% of Sub Corp. Par sold depreciable assets to Sub on January 1, Year 3, at a before-tax gain of $46,655. On January
Par owns 90.65% of Sub Corp. Par sold depreciable assets to Sub on January 1, Year 3, at a before-tax gain of $46,655. On January 1, Year 4, Sub sold depreciable assets to Par at a before-tax gain of $93,311. Both assets are being depreciated over ten (10) years. The tax rate for both companies is 31.23%. How much after-tax intercompany gain or loss was realized during Year 4 from Par's sale of assets to Sub in Year 3? a. $2,968 b. $3,128 c. $3,048 d. $3,208 e. $3,289
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