Garrison holds a controlling interest in Robertson's outstanding stock. For the current year, the following information has been gathered about these two companies: Separate operating income Dividends paid Tax rate Garrison $ 300,000 (includes $50,000 intra-entity gross profit in ending inventory) 32,000 21% Robertson $ 200,000 50,000 21% Garrison uses the initial value method to account for the investment in Robertson. Garrison's separate operating income figure does not include dividend income for the current year.
Garrison holds a controlling interest in Robertson's outstanding stock. For the current year, the following information has been gathered about these two companies: Separate operating income Dividends paid Tax rate Garrison $ 300,000 (includes $50,000 intra-entity gross profit in ending inventory) 32,000 21% Robertson $ 200,000 50,000 21% Garrison uses the initial value method to account for the investment in Robertson. Garrison's separate operating income figure does not include dividend income for the current year.
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 80P
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8.
Assume that Garrison owns 70 percent of Robertson's voting stock. What total amount of income tax expense does a consolidated income statement recognize? (Round your intermediate calculations and final answer to nearest whole dollar amount.)
It is not answers 96939, 94500, 103348, 95040, 99145
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