Question: Repeat Problem 73 if tax law is changed so that the taxable income of a company is defined to be all of its own annual
Problem 73
As a result of several mergers and acquisitions, stock in four companies has been distributed among the companies. Each row of the following table gives the percentage of stock in the four companies that a particular company owns and the annual net income of each company (in millions of dollars):
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So company A holds 71% of its own stock, 8% of the stock in company B, 3% of the stock in company C, etc. For the purpose of assessing a state tax on corporate income, the taxable income of each company is defined to be its share of its own annual net income plus its share of the taxable income of each of the other companies, as determined by the percentages in the table. What is the taxable income of each company (to the nearest thousand dollars)?
Percentage of Stock Owned in Company AB C D 71 8 37 12 81 11 13 11 9 28 6 2 14 72 Annual Net Income Million S 3.2 2.6 3.8 4.4 Company
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