The Parent Consolidated Group Reports the Following Results for the Tax

question 112

Essay

The Parent consolidated group reports the following results for the tax year. Determine each member's share of the consolidated tax liability, assuming that all members have consented to use the relative taxable income tax-sharing method. Dollar amounts are listed in millions, and a 21% income tax rate applies to all of the entities. $$\begin{array} { | l | c | c | c | c | c | } \hline & \text { Parent } & \text { SubOne } & \text { SubTwo } & \text { SubThree } & \text { Consolidated } \\\hline \text { Ordinary income } & \$ 600 & \$ 200 & \$ 60 & ( \$ 30 ) & \$ 830 \\\hline \text { Capital gain/loss } & - 0 - & - 0 - & 20 & ( 5 ) & 15 \\\hline \S 1231 \text { gain/loss } & \underline { 130 } & \underline { - 0 - } & \underline { ( 55 ) } & \underline { - 0 - } & \underline { 75 } \\\hline\end{array}$$

---

Definitions:

Minority Families

Families that belong to a racial, ethnic, or cultural minority group within a larger society, often facing unique challenges and dynamics.

Unconscious Racism

Implicit biases and prejudices towards other races that individuals may not be aware of harboring.

Anti-Black Attitudes

Prejudiced beliefs, feelings, or attitudes toward black people that are characterized by discrimination or hostility.

Anti-Hispanic Attitudes

Negative biases or prejudices specifically directed towards Hispanic individuals or communities.