Question
The Triple Plus affiliated group consists of Triple Plus, a North Dakota corporation, and its three wholly-owned subsidiaries. In 2015, the four corporations report the
The Triple Plus affiliated group consists of Triple Plus, a North Dakota corporation, and its three wholly-owned subsidiaries. In 2015, the four corporations report the following net income (loss).
Triple Plus | $1,200,000 |
Subsidiary 1 | 400,000 |
Subsidiary 2 | (300,000) |
Subsidiary 3 | 600,000 |
None of the subsidiary companies paid dividends to the parent company.
If Triple Plus elects to file a consolidated U.S. tax return, compute consolidated taxable income assuming that subsidiaries 1 and 2 are domestic corporations and subsidiary 3 is a foreign subsidiary.
$1,300,000 | ||
$800,000 | ||
$900,000 | ||
$1,900,000 |
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