Determine Song taxable income in States

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Question - Vogel Corporation owns two subsidiaries. Song, located in State A, generated $934,000 taxable income this year. Bird, located in State B, generated a $186,800 loss for the period.

Determine Song's taxable income in States A and B, assuming that the subsidiaries constitute independent corporations under the tax law.

How does your answer change if the companies constitute a unitary business?

If the companies constitute a unitary business, the incomes, as well as the apportionment factors, of the two entities are combined.

Reference no: EM133015315

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