Corporation P owns 93 percent of the outstanding stock of Corporation T. This year, the corporation's records provide the following information: Corporation P Corporation T Ordinary operating income (loss) $530,000 $ (215,000) Capital gain (loss) (8,600) 6,300 Section 1231 gain (loss) (1,300) 5,600 Required: Compute each corporation's taxable income if each files a separate tax return. Compute consolidated taxable income if Corporation P and Corporation T file a consolidated tax return.
Corporation P owns 93 percent of the outstanding stock of Corporation T. This year, the corporation's records provide the following information: Corporation P Corporation T Ordinary operating income (loss) $530,000 $ (215,000) Capital gain (loss) (8,600) 6,300 Section 1231 gain (loss) (1,300) 5,600 Required: Compute each corporation's taxable income if each files a separate tax return. Compute consolidated taxable income if Corporation P and Corporation T file a consolidated tax return.
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
Problem 12CE
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Transcribed Image Text:Corporation P owns 93 percent of the outstanding stock of Corporation T. This year, the
corporation's records provide the following information: Corporation P Corporation T Ordinary
operating income (loss) $530,000 $ (215,000) Capital gain (loss) (8,600) 6,300 Section 1231
gain (loss) (1,300) 5,600 Required: Compute each corporation's taxable income if each files a
separate tax return. Compute consolidated taxable income if Corporation P and Corporation T file
a consolidated tax return.
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