When Price Competition Is Fierce, the Incidence of the Corporate

When price competition is fierce, the incidence of the corporate income tax

A) Cannot be passed on to customers or suppliers, and must be borne solely by shareholders
B) May be passed on to employees through lower compensation
C) Is borne primarily by customers through higher prices or lower product quality
D) Can be mitigated only with tax reform
100) Corporation F owns 95 percent of the outstanding stock of Corporation G. This year, the corporations' records provide the following information:
$\begin{array}{lrr}&\text { Corporation F} &\text { Corporation}\\\text { ordinary income (loss) } & \$(500,000) & \$ 800,000 \\\text { Capital gain (loss) } & 15,000 & (20,000) \\\text { Section } 1231 \text { gain (loss) } & 4,000 & (3,000) \end{array}$
Compute each corporation's taxable income if they file separate tax returns.Compute consolidated taxable income if Corporation F and Corporation G file a consolidated tax return.