McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 62

ABC's taxable income for the year is $200,000 and CBA's taxable income for the year is $400,000. Compute the combined tax liability of the two corporations assuming the following:
a. Amanda, Jermaine, and O'Neil each own one-third of the stock of ABC and CBa.b. Amanda, Jermaine, and O'Neil each own one-third of the stock of ABC and Amanda and Dustin each own 50 percent of the stock of CBa.c. ABC owns 85 percent of CBA's stock on the last day of the year. ABC and CBA file separate (as opposed to consolidated) tax returns.