Puddle Corporation owns 100% of Splash Corporation. Puddle reports on the cash basis and Splash reports on
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Question:
Puddle Corporation owns 100% of Splash Corporation. Puddle reports on the cash
basis and Splash reports on the accrual basis. Their tax information for the current year is as
follows:
Puddle taxable income $ 188,000
Splash loss($ 62,000)
Puddle’s income includes a $5,000 Section 1231 gain and a charitable contribution deduction
of $15,000. Splash’s loss includes a short-term capital loss of ($3,300). Splash paid a dividend
to Puddle of $18,000. Puddle recorded dividend income and a dividends-received deduction.
Compute the consolidated taxable income for the year.
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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