For Each of the Indicated Tax Years, Compute Consolidated Taxable

Essay

For each of the indicated tax years, compute consolidated taxable income for the calendar year Holloway Group, which elected consolidated status immediately upon creation of the two member corporations in January year 1. All recognized income related to the data processing services of the firms. No intercompany transactions were completed during the indicated years. $$\begin{array} { | l | c | c | } \hline \text { Tax Year } & \text { Holloway Corporation } & \text { Olson Corporation } \\\hline \text { Year 1 } & \$ 250,000 & ( \$ 70,000 ) \\\hline \text { Year 2 } & 250,000 & ( 120,000 ) \\\hline \text { Year 3 } & 250,000 & ( 180,000 ) \\\hline \text { Year 4 } & 250,000 & 110,000 \\\hline\end{array}$$