Determine each member share of consolidated tax liability

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Question - The Parent 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 income $850 $200 $150 ($90) with a $25 capital loss carryover

Consolidated taxable income $1,085

Consolidated tax liability $228

Energy tax credit from SubOne (20) Net tax due $208

Determine each member's share of the consolidated tax liability, assuming that the group members have adopted the relative tax liability tax-sharing method.

Reference no: EM132698367

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