ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 10, Problem 10.13E
a
To determine
Allocation of tax expenses when a consolidated return is filed:a consolidated entity may file consolidated income tax return. For a subsidiary to be eligible to be included in the consolidated tax return, at least 80 percent of its stock must be held by the parent company or another company, or combination of companies included in the consolidated returns. Major advantage of filing consolidated return is the ability to offset the losses of the company against the profits of another, in addition, dividends and other transfers between affiliates are not taxed.
the income tax expense assigned to each company.
b
To determine
Allocation of tax expenses when a consolidated return is filed: a consolidated entity may file consolidated income tax return. For a subsidiary to be eligible to be included in the consolidated tax return, at least 80 percent of its stock must be held by the parent company or another company, or combination of companies included in the consolidated returns. Major advantage of filing consolidated return is the ability to offset the losses of the company against the profits of another, in addition, dividends and other transfers between affiliates are not taxed.
the computation of consolidated net income and income to controlling interest when consolidated tax return is filed.
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The entity made corporate estimated tax payment in the
To compute the provision for income tax, the following
Tax depreciation in excess of financial statement amount 160,000
Pecorino Company had pretax financial income of P2,500,000
3. What amount of income tax payable should be reported?
4. What amount of total tax expense should be reported?
Problem 16-30 (IFRS)
in the current year.
amount of 180,000 during the current year.
information was provided:
360,000
Interest income received
Tax depreciation in excess of financial statement amount
Rent received in advance
Corporate tax rate
280,000
30%
1. What amount of permanent difference between book
income and taxable income existed at year-end?
a. 520,000
b. 360,000
c. 800,000
d. 280,000
2. What amount of current tax expense should be reported?
a. 786,000
b. 510,000
c. 750,000
d. 678,000
000,00
a: 498,000
b. 606,000
c. 330,000
d. 570,000
4. What amount of total tax expense should be repor0
a. 714,000
b. 726,000
c. 642,000
d. 594,000
570
The Parent consolidated group reports the following results for the tax year.
Entity
Income or Loss
Parent
$180,000
Sub1
($19,000)
Sub2
($38,000)
Sub3
$62,000
If an amount is zero, enter "0". If required, round any division to two decimal places and use rounded amounts in subsequent computations. Round your final answers to the nearest dollar.
a. Assuming a 21% tax rate, what is the group's consolidated taxable income and consolidated tax liability? The consolidated taxable income is $ 185,000
If the Parent group has consented to the relative taxable income method, how will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3?
Parent
$___________
Sub1
$__________
Sub2
$0
Sub3
$_________
What is the Parent, Sub 1, and Sub 3?
Pecorino Company had pretax financial income of P2,500,000 in the current year. The entity made corporate estimated tax payment in the amount of 180,000 during the current year. To compute the provision for income tax, the following information was provided: Interest income received 360,000 Tax depreciation in excess of financial statement amount 160,000 Rent received in advance 280,000 Corporate tax rate 30%
What amount of permanent difference between book income and taxable income existed at year-end?
Chapter 10 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 10 - Prob. 10.1QCh. 10 - Why are dividend payments to noncontrolling...Ch. 10 - Prob. 10.3QCh. 10 - Why are changes in inventory balances not shown in...Ch. 10 - Prob. 10.5QCh. 10 - How is an increase in inventory included in the...Ch. 10 - What portion of the sales of an acquired company...Ch. 10 - Prob. 10.8QCh. 10 - Prob. 10.9QCh. 10 - Prob. 10.10Q
Ch. 10 - Prob. 10.11QCh. 10 - Prob. 10.12QCh. 10 - Prob. 10.13QCh. 10 - Prob. 10.14QCh. 10 - How do interperiod income tax allocation...Ch. 10 - How does the use of interperiod tax allocation...Ch. 10 - Prob. 10.17QCh. 10 - Prob. 10.18QCh. 10 - Prob. 10.19QCh. 10 - When a subsidiary’s convertible bond is treated as...Ch. 10 - Prob. 10.21QCh. 10 - What effect does the presence of a noncontrolling...Ch. 10 - Prob. 10.3CCh. 10 - Consolidated Cash Flows Analysis The consolidated...Ch. 10 - Prob. 10.1ECh. 10 - Prob. 10.2ECh. 10 - Prob. 10.3ECh. 10 - Prob. 10.4ECh. 10 - Prob. 10.5ECh. 10 - Direct Method Cash Flow Statement Using the data...Ch. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Prob. 10.10ECh. 10 - Prob. 10.11ECh. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Prob. 10.14ECh. 10 - Effect of Convertible Bonds on Earnings per Share...Ch. 10 - Effect of Convertible Preferred Stock on Earnings...Ch. 10 - Prob. 10.17PCh. 10 - Prob. 10.18PCh. 10 - Preparing a Statement of Cash Flows—Direct Method...Ch. 10 - Prob. 10.20PCh. 10 - Prob. 10.21PCh. 10 - Prob. 10.22PCh. 10 - Prob. 10.23PCh. 10 - Prob. 10.24PCh. 10 - Prob. 10.25PCh. 10 - Prob. 10.26PCh. 10 - Prob. 10.27PCh. 10 - Prob. 10.28PCh. 10 - Prob. 10.29PCh. 10 - Prob. 10.30PCh. 10 - Prob. 10.31PCh. 10 - Prob. 10.32PCh. 10 - Prob. 10.33P
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