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SWFT Essntl Tax Individ/Bus Entities 2020

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter16: Multijurisdictional Taxation

Section: Chapter Questions

Problem 1BCRQ

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ParentCo and SubCo report the following items of income and deduction for the current year.
ParentCo's
SubCo's Taxable
Item
Taxable Income
Income
Income (loss) from operations
$100,000
$10,000
(10,000)
§ 1231 loss
Capital gain
Charitable contribution
20,000
12,000
1,000
Compute ParentCo and SubCo's current year taxable income or loss computed on a separate basis.
ParentCo
SubCo
a.
$81,000
$21,000
b.
$81,000
$22,000
C.
$70,000
$22,000
d.
$70,000
$21,000
0000

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