What is the group consolidated taxable income

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Reference no: EM132836538

The Parent consolidated group reports the following results for the tax year.

Entity            Income or Loss

Parent            $55,200

Sub1             (5,520)

Sub2              22,080

Sub3           11,040

Problem a. What is the group's consolidated taxable income and consolidated tax liability?

Problem b. If the Parent group has consented to the relative taxable income method, how will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3?

Reference no: EM132836538

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