On January 1, 2020, Alpha Corporation purchases 100% of the stock of Omega Corporation for $2 million. During the year, Omega Corporation earns $300,000 of taxable income, $30,000 of tax-exempt income, and distributes $150,000 in dividends. Each company paid its own tax liability. What basis adjustment must Alpha Corporation make at year-end?

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The Answer of On January 1, 2020, Alpha Corporation purchases 100% of the stock of Omega Corporation for $2 million. During the year, Omega Corporation earns $300,000 of taxable income, $30,000 of tax-exempt income, and distributes $150,000 in dividends. Each company paid its own tax liability. What basis adjustment must Alpha Corporation make at year-end?

On January 1, 2020, Alpha Corporation Purchases 100% of the Stock