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Form 5278 with Affiliated Companies (Cont 1)This is a Form 5278 for ABCD Corporation and Subsidiaries for the tax years September 30, 1990 and September 30, 1991. It depicts how to prepare a notice of deficiency when there is a parent company and several subsidiary companies.Line 7 contains two Adjustments to Income - one on line a and one on line b. The adjustment on line a is entitled See Schedule 1A Attached in the amounts of $19,577,754 for 1990 and $30,870,631 for 1991. The adjustment on line b is entitled Environmental Tax Deduction in the amounts of a decrease of $11,746 for 1990 and a decrease of $13,086 for 1991.Line 8 shows Total Adjustments of $19,566,008 for 1990 and $30,857,545 for 1991.Line 9 is Taxable Income per Return as filed in the amounts of $526,753,789 for 1990 and $491,929,507 for 1991.Line 10 is Taxable Income as Revised in the amounts of $546,319,797 for 1990 and $522,787,052 for 1991.Tax on the Taxable Income as Revised is shown in Line 11 in the amounts of $185,748,731 for 1990 and $177,747,598 for 1991.There are no credits to apply against the tax. However there are additional tax liabilities for environmental tax in the amounts of $25,890 for 1990 and $35,780 for 1991.The Total Corrected Tax Liability is the Tax amount plus the additional tax liability for the environmental tax. Therefore, Line 18 shows Total Corrected Tax Liability totaling $185,774,621 for 1990 and $156,965,789 for 1991.The Total Tax per Return is shown on Line 19 and totals $156,059,719 for 1990 and $156,965,789 for 1991.There are no adjustment amounts on Line 20 for increases (decreases) to EIC, ACTC and Fuel Credits.Therefore, the difference between the amounts on Line 18 and the amounts on Line 19 equals the Deficiency-Increase in Tax amount on Line 21. The amounts are $29,714,902 for 1990 and $20,817,589 for 1991.Since there are no Prepayment Credit Adjustments on Line 22, the Balance Due shown on Line 23 is the same as the Deficiency amounts shown on Line 21.