Compute the consolidated taxable income for the year

Reference no: EM133541833

Case: Puddle Corporation owns 100% of Splash Corporation. Puddle reports on the cash basis and Splash reports on the accrual basis. Their tax information for the current year is as follows:

Puddle taxable income $ 188,000

Splash loss ($ 62,000)

Puddle's income includes a $5,000 Section 1231 gain and a charitable contribution deduction of $15,000. Splash's loss includes a short-term capital loss of ($3,300). Splash paid a dividend to Puddle of $18,000. Puddle recorded dividend income and a dividends-received deduction.

Question: Compute the consolidated taxable income for the year.

Reference no: EM133541833

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