Parson Company Syber Company Consolidated Totals Sales $ (744,000 ) $ (654,000 ) $ (1,223,000 ) Cost of goods sold 450,000 412,000 691,000 Operating expenses 104,000 107,000 213,300 Income of Syber (102,960 ) 0 0 Separate company net income $ (292,960 ) $ (135,000 ) Consolidated net income $ (318,700 ) Net income attributable to noncontrolling interest 25,740 Net income attributable to Parson Company $ (292,960 ) Retained earnings, 1/1/21 $ (592,320 ) $ (316,000 ) $ (592,320 ) Net income (above) (292,960 ) (135,000 ) (292,960 ) Dividends declared 63,000 27,000 63,000 Retained earnings, 12/31/21 $ (822,280 ) $ (424,000 ) $ (822,280 ) Cash and receivables $ 280,000 $ 78,000 $ 333,000 Inventory 194,000 154,000 335,000 Investment in Syber Company 418,320 0 0 Land, buildings, and equipment 414,000 345,000 759,000 Trademarks 0 0 29,900 Total assets $ 1,306,320 $ 577,000 $ 1,456,900 Liabilities $ (342,040 ) $ (71,000 ) $ (388,040 ) Common stock (112,000 ) (82,000 ) (112,000 ) Additional paid-in capital (30,000 ) 0 (30,000 ) Noncontrolling interest in Syber 0 0 (104,580 ) Retained earnings (above) (822,280 ) (424,000 ) (822,280 ) Total liabilities and equities $ (1,306,320 ) $ (577,000 ) $ (1,456,900 )
Parson Company Syber Company Consolidated Totals Sales $ (744,000 ) $ (654,000 ) $ (1,223,000 ) Cost of goods sold 450,000 412,000 691,000 Operating expenses 104,000 107,000 213,300 Income of Syber (102,960 ) 0 0 Separate company net income $ (292,960 ) $ (135,000 ) Consolidated net income $ (318,700 ) Net income attributable to noncontrolling interest 25,740 Net income attributable to Parson Company $ (292,960 ) Retained earnings, 1/1/21 $ (592,320 ) $ (316,000 ) $ (592,320 ) Net income (above) (292,960 ) (135,000 ) (292,960 ) Dividends declared 63,000 27,000 63,000 Retained earnings, 12/31/21 $ (822,280 ) $ (424,000 ) $ (822,280 ) Cash and receivables $ 280,000 $ 78,000 $ 333,000 Inventory 194,000 154,000 335,000 Investment in Syber Company 418,320 0 0 Land, buildings, and equipment 414,000 345,000 759,000 Trademarks 0 0 29,900 Total assets $ 1,306,320 $ 577,000 $ 1,456,900 Liabilities $ (342,040 ) $ (71,000 ) $ (388,040 ) Common stock (112,000 ) (82,000 ) (112,000 ) Additional paid-in capital (30,000 ) 0 (30,000 ) Noncontrolling interest in Syber 0 0 (104,580 ) Retained earnings (above) (822,280 ) (424,000 ) (822,280 ) Total liabilities and equities $ (1,306,320 ) $ (577,000 ) $ (1,456,900 )
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 19P
Related questions
Question
| Parson Company |
Syber Company |
Consolidated Totals |
|||||||||
| Sales | $ | (744,000 | ) | $ | (654,000 | ) | $ | (1,223,000 | ) | ||
| Cost of goods sold | 450,000 | 412,000 | 691,000 | ||||||||
| Operating expenses | 104,000 | 107,000 | 213,300 | ||||||||
| Income of Syber | (102,960 | ) | 0 | 0 | |||||||
| Separate company net income | $ | (292,960 | ) | $ | (135,000 | ) | |||||
| Consolidated net income | $ | (318,700 | ) | ||||||||
| Net income attributable to noncontrolling interest | 25,740 | ||||||||||
| Net income attributable to Parson Company | $ | (292,960 | ) | ||||||||
| $ | (592,320 | ) | $ | (316,000 | ) | $ | (592,320 | ) | |||
| Net income (above) | (292,960 | ) | (135,000 | ) | (292,960 | ) | |||||
| Dividends declared | 63,000 | 27,000 | 63,000 | ||||||||
| Retained earnings, 12/31/21 | $ | (822,280 | ) | $ | (424,000 | ) | $ | (822,280 | ) | ||
| Cash and receivables | $ | 280,000 | $ | 78,000 | $ | 333,000 | |||||
| Inventory | 194,000 | 154,000 | 335,000 | ||||||||
| Investment in Syber Company | 418,320 | 0 | 0 | ||||||||
| Land, buildings, and equipment | 414,000 | 345,000 | 759,000 | ||||||||
| Trademarks | 0 | 0 | 29,900 | ||||||||
| Total assets | $ | 1,306,320 | $ | 577,000 | $ | 1,456,900 | |||||
| Liabilities | $ | (342,040 | ) | $ | (71,000 | ) | $ | (388,040 | ) | ||
| Common stock | (112,000 | ) | (82,000 | ) | (112,000 | ) | |||||
| Additional paid-in capital | (30,000 | ) | 0 | (30,000 | ) | ||||||
| Noncontrolling interest in Syber | 0 | 0 | (104,580 | ) | |||||||
| Retained earnings (above) | (822,280 | ) | (424,000 | ) | (822,280 | ) | |||||
| Total liabilities and equities | $ | (1,306,320 | ) | $ | (577,000 | ) | $ | (1,456,900 | ) |
Transcribed Image Text:Req A to H
Reg I and J
i. With a tax rate of 21 percent, what income tax journal entry is recorded if the companies prepare a consolidated tax return?
j. With a tax rate of 21 percent, what income tax journal entry is recorded if these two companies prepare separate tax returns?
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Show less A
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X:
Record the income tax expense.
>
1
2
Record the income tax expense for Parson.
Record the income tax expense for Syber.
Credit
Note :
journal entry has been entered
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