MajorCo and MinorCo Had the Following Items of Income and Deduction

question 7

Short Answer

MajorCo and MinorCo had the following items of income and deduction for the current year: $\begin{array}{ccc} &\text { MajorCo's } & \text { MinorCo's Taxable }\\\text { Item } & \text { Taxable Income } & \text { Income } \\\hline \text { Income (loss) from Operations }&\$90,000&\$35,000\\\S 1231 \text { Loss }&(15,000)\\\text { Capital Gain (Loss) }&(12,000)&20,000\\\text { Charitable Contribution }&30,000&22,000\end{array}$ Compute MajorCo and MinorCo's taxable income or loss computed on a separate basis. $\begin{array}{lll}&\text { MajorCo }&\text { MinorCo }\\\text { a. } & \$ 45,000 & \$ 33,000 \\\text { b. } & \$ 56,700 & \$ 31,500 \\\text { c. } & \$ 67,500 & \$ 49,500 \\\text { d. } & \$ 75,000 & \$ 33,000 \\\text { e. } & \$ 75,000 & \$ 55,000\end{array}$

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Definitions:

Informational

Pertaining to information, often focusing on the dissemination, processing, or use of knowledge.

Decisional

Decisional refers to anything related to the process of making decisions or choices among alternatives.

Open Systems

Transform human and material resource inputs into finished goods and services.

Multiculturalism

A socio-political philosophy or ideology that promotes the inclusion and respect of diverse cultural backgrounds within a society.