Exercise 8-24 (Algorithmic) (LO. 5)

The Parent consolidated group reports the following results for the 2021 tax year.

Entity	Income or Loss
Parent	$70,800
Sub1	(7,080)
Sub2	28,320
Sub3	14,160

Do not round any division in your computations. If required, round your answers to nearest whole dollar. If an amount is zero, enter "0".

a. What is the group's consolidated taxable income and consolidated tax liability?

If the relative taxable income method, the consolidated taxable income is $106200 and the total consolidated tax liability is $22302 .

b. If the Parent group has consented to the relative taxable income method, how will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3?

Entity	Income or Loss
Parent	$
Sub1	$
Sub2	$
Sub3	$