Parent Corporation's current-year taxable income included $100,000 net income from operations and a $40,000 net long-term capital gain.Parent also made a $19,000 contribution to State University.SubCo produced $75,000 income from operations and incurred a $50,000 net short-term capital loss.
Use the computational worksheet of Figure 8-2 to derive the group members' separate taxable incomes and the group's consolidated taxable income.

Question

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The Answer of Parent Corporation's current-year taxable income included $100,000 net income from operations and a $40,000 net long-term capital gain.Parent also made a $19,000 contribution to State University.SubCo produced $75,000 income from operations and incurred a $50,000 net short-term capital loss.
Use the computational worksheet of Figure 8-2 to derive the group members' separate taxable incomes and the group's consolidated taxable income.

Parent Corporation's Current-Year Taxable Income Included $100,000 Net Income from Operations