Consistency, distinctiveness, advantage, and feasibility are Richard Rumelt's four criteria for evaluating a strategy

The more the cost base is composed of fixed or indirect costs, the more ______ it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

A. difficult B. easy C. simpler D. straightforward E. effortless

Paradise Corporation owns 100% of Aldred Corporation, 90% of Balme Corporation, 80% of Calder Corporation, 75% of Dale Corporation, 20% of East Corporation, and 8% of Faber Corporation

Paradise, Aldred, Balme and Calder belong to an affiliated group. All of these corporations are domestic corporations. During 2014, Paradise Corporation reports net income of $1,500,000. This net income includes the full amount of dividends received from Aldred and Faber, but does not include the dividends received from Balme, Calder, Dale, and East Corporations. All investees have paid out all of their net income in the form of dividends. Paradise's share of the various dividend distributions is as follows: From Aldred: $90,000 From Balme: $92,000 From Calder: $88,000 From Dale: $66,000 From East: $50,000 From Faber: $40,000 Required: Calculate the correct amount of taxable income for Paradise Corporation if a consolidated tax return is filed. What will be an ideal response?