The Quad Affiliated Group Consists of Quad, a Delaware Corporation $\quad$

question 99

Multiple Choice

The Quad affiliated group consists of Quad, a Delaware corporation, and its three wholly-owned subsidiaries. This year, the four corporations report the following net income (loss) .
Quad $\quad$$\quad$$\quad$$\quad$$\quad$ $ 1,000,000
Subsidiary 1 $\quad$$\quad$$\quad$ (400,000 )
Subsidiary 2 $\quad$$\quad$$\quad$ 200,000
Subsidiary 3 $\quad$$\quad$$\quad$ 600,000
If Quad elects to file a consolidated U.S. tax return, compute consolidated taxable income assuming that subsidiaries 1 and 2 are domestic corporations and subsidiary 3 is a foreign corporation.

• A) $1,000,000
• B) $800,000
• C) $1,400,000
• D) $1,800,000