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what are the income tax expense and income tax currently payable for each company if they choose to file separate returns?

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Question

On January 1, 2009, Piranto acquires 90 percent of Slinton's outstanding shares. Financial information for these two companies for the years of 2009 and 2010 follows;2009 2010;Piranto Company;Sales $(600,000) $(800,000);Operational expenses 400,000 500,000;Unrealized gains as of;end of the year (120,000) (150,000);Dividend income Slinton company (18,000) (36,000);Slinton Company;Sales (200,000) (250,000);Operational expenses 120,000 150,000;Dividend paid (20,000) (40,000);Assume that a tax rate of 40 percent is applicable to both companies.;a. On consolidated financial statements for 2010, what are the income tax expense and the income tax currently payable if Piranto and Slinton file a consolidated tax return as an affiliated group?;b. On consolidated financial statement for 2010, what are the income tax expense and income tax currently payable for each company if they choose to file separate returns?

 

Paper#27285 | Written in 18-Jul-2015

Price : $40
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