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 27

{Research}Pete, Inc. a Kentucky Corporation, owns 100 percent of Suvi, Inc. a Mississippi Corporation.Peter and Suvi file a consolidated federal tax return.ete has income tax nexus in Kentucky and South Carolina.Suvi in Mississippi and South Carolina.Kentucky, Mississippi, and south carolina are separate-return states.in which states must pete and suvi file tax returns? Can they file a consolidated return in any states? Explain.(Hint: Use South Carolina Form SC 1120 and the related instructions.