Pretax operating incomes of Pang Corporation and its 70%-owned subsidiary, Sala Corporation, for the year 2014, are shown below. Sala pays total dividends of $60,000 for the year. There are no unamortized book value/fair value differentials relating to Pang's investment in Sala. During the year, Pang sold land to Sala for a gain of $35,000 and Sala holds this land at the end of the year. The marginal corporate tax rate for both corporations is 34%.

Pretax operating incomes of Pang Corporation and its 70%-owned subsidiary, Sala Corporation, for the year 2014, are shown below. Sala pays total dividends of $60,000 for the year. There are no unamortized book value/fair value differentials relating to Pang's investment in Sala. During the year, Pang sold land to Sala for a gain of $35,000 and Sala holds this land at the end of the year. The marginal corporate tax rate for both corporations is 34%. Sala Pang $900,000 Sales revenue $600,000 Gain on sale of land 35,000 Cost of sales (480,000) (325,000) Other expenses (192,000) (78,000) Pretax operating income (does not include investment income) $263.000 $197,000 1. Determine the separate amounts of income tax expense for Pang and Sala as if they had filed separate tax returns. 2. Determine Pang's net income from Sala. 3 Pretax operating incomes of Pang Corporation and its 70%-owned subsidiary, Sala Corporation, for the year 2014, are shown below. Sala pays total dividends of $60,000 for the year. There are no unamortized book value/fair value differentials relating to Pang's investment in Sala. During the year, Pang sold land to Sala for a gain of $35,000 and Sala holds this land at the end of the year. The marginal corporate tax rate for both corporations is 34%. Sala Pang $900,000 Sales revenue $600,000 Gain on sale of land 35,000 Cost of sales (480,000) (325,000) Other expenses (192,000) (78,000) Pretax operating income (does not include investment income) $263.000 $197,000 1. Determine the separate amounts of income tax expense for Pang and Sala as if they had filed separate tax returns. 2. Determine Pang's net income from Sala. 3