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

Exercise 22

ABC's taxable income for the year is $25,000 and CBA's taxable income for the year is $10,000,000.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.