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The Parent Consolidated Group Reports the Following Results for the Tax

question 68

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

Definitions:

Tranquility

A state of peace and calm.

Hobbes

Refers to Thomas Hobbes, a 17th-century English philosopher known for his work in political philosophy, including his social contract theory.

Misfortunes

Unfortunate events or occurrences that bring about suffering, loss, or hardship.

Pity

A feeling of sorrow and compassion caused by the suffering and misfortunes of others.