Question
See attachment The Chief consolidated group reports the following results for the tax year. Dollar amounts are listed in millions. Parent SubOne SubTwo SubThree Consolidated
See attachment The Chief consolidated group reports the following results for the tax year. Dollar amounts are listed in millions. Parent SubOne SubTwo SubThree Consolidated Ordinary income $600 $200 $140 ($90) $ 850 Capital gain/loss -0- -0- 60 -25 35 1231 gain/loss 250 -0- -50 -0- 200 Separate taxable incomes $850 $200 $150 ($90) with a $25 capital loss carryover Consolidated taxable income $1,085 Consolidated tax liability $ 380 Energy tax credit, from SubOne -70 Net tax due $ 310 Determine each member's share of the consolidated tax liability. All of the members have consented to use the relative taxable income method. Assume a 35% marginal tax rate
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