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Q: Assume the same facts as in Problem 32, except that the

Assume the same facts as in Problem 32, except that the group members have adopted the relative tax liability tax-sharing method.

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Q: Ramon and Sophie are the sole shareholders of Gull Corporation. Ramon

Ramon and Sophie are the sole shareholders of Gull Corporation. Ramon and Sophie each have a basis of $100,000 in their 2,000 shares of Gull common stock. When its E & P was $700,000, Gull Corporation...

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Q: The consolidated tax liability for most affiliated groups is assigned among die

The consolidated tax liability for most affiliated groups is assigned among die parent and its subsidiaries-each entity is responsible for "its share" of the tax. The Regulations allow several methods...

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Q: Aqua Corporation is a retail operation specializing in pool equipment and outdoor

Aqua Corporation is a retail operation specializing in pool equipment and outdoor furniture. It is very interested in merging with Icterine Corporation, a lamp manufacturer; Aqua is very profitable, a...

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Q: Rufous Corporation just lost a $1.5 million product liability

Rufous Corporation just lost a $1.5 million product liability lawsuit. Its assets currently are worth $2 million, and its outstanding liabilities amount to $800,000 without considering the lawsuit los...

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Q: Puce has two individual shareholders, Abram and Carmella. The shareholders

Puce has two individual shareholders, Abram and Carmella. The shareholders purchased their stock in Puce four years ago at a cost of $500,000 each. For the past nine years, Puce has been engaged in tw...

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Q: Shepherd Corporation i5 considering acquiring RentCo by exchanging its stock (value

Shepherd Corporation i5 considering acquiring RentCo by exchanging its stock (value of $10 per share) for RentCo's only asset, a tract of land (adjusted basis of $150,000 and no liability). The yearly...

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Q: Child Corporation joined the Thrust consolidated group in year 1. At

Child Corporation joined the Thrust consolidated group in year 1. At the time it joined the group, Child held a $2 million NOL carryforward. On a consolidated basis, the members of Thrust generated si...

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Q: Cougar, Jaguar, and Ocelot corporations have filed on a consolidated

Cougar, Jaguar, and Ocelot corporations have filed on a consolidated, calendar year basis for many years. At the beginning of the tax year, the group elects to de-consolidate. The group's S6 million N...

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Q: Grand Corporation owns all of the stock of Junior, Ltd

Grand Corporation owns all of the stock of Junior, Ltd., a corporation that has been declared bankrupt and holds no net assets. Junior still owes $1 million to wholesale, Inc., one of its suppliers, a...

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