ParentCo and SubCo are calendar year corporations that keep their respective books on the accrual basis. The companies have taxable income of $200000 and $250000 respectively for tax year 2013 (before consolidation adjustments elimination entries and charitable deductions). The following transactions are included:
Directions: Calculate the consolidated taxable income and consolidated tax liability of ParentCo and SubCo for 2013. Than calculate the basis of ParentCos stock at the end of 2013 assuming that it was $1400000 at the beginning of the year.
Requirements: Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that your thought process can be examined. Make good use of comments to convey your thought process as well. No hard coding of solutions. Submit a single Excel file for grading. Review the grading rubric which can be accessed from the Module 8 folder to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.
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