Senior, Ltd., acquires all of the stock of JuniorCo for $30 million at the beginning of year 1. The group immediately elects to file income tax returns on a consolidated basis. Senior’s operations generate a $50 million profit every year. In year 2, JuniorCo pays its parent a $9 million dividend. Operating results for JuniorCo are as follows. Tax Year Taxable Income 1 $ 4 million 2 12 million 3 15 million a. Compute Senior’s basis in the JuniorCo stock as of the end of years 1, 2, and 3. b. Same as (a), except that JuniorCo’s tax year 2 produced a $6 million NOL. c. Same as (a), except that JuniorCo’s tax year 2 produced a $40 million NOL.