What are the income tax expense and income tax payable

Assignment Help Financial Management
Reference no: EM132345369

Question

On January 1, 2017, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial information for these two companies for the years of 2017 and 2018 follows:

 

2017

2018

Abbey Company:

 

 

Sales

$(692,000)

$(1,098,000)

Operating expenses

444,000

672,000

Intra-entity gross profits in ending inventory (included in above figures)

(167,000)

(186,000)

Dividend income-Benjamin Company

(9,000)

(40,500)

Benjamin Company:

 

 

Sales

(269,000)

(351,000)

Operating expenses

129,000

170,000

Dividends paid

(10,000)

(45,000)

Assume that a tax rate of 40 percent is applicable to both companies.

On consolidated financial statements for 2018, what are the income tax expense and the income tax currently payable if Abbey and Benjamin file a consolidated tax return as an affiliated group?

On consolidated financial statements for 2018, what are the income tax expense and income tax currently payable if they choose to file separate returns?

Reference no: EM132345369

Questions Cloud

Goal of triple bottom line is to encourage companies : The goal of Triple Bottom Line is to encourage companies to focus on metrics other than profits.
Explain any major risk in the IT systems components : ITC596 IT Risk Management Assignment, Charles Sturt University, Australia. Identify and explain any major risk in the IT systems components
What steps could you take to develop more resilience : Change is part of our daily healthcare environment. Clinical nursing judgments based on quality and safety, as well as protocols and standards.
Quantitative and qualitative research : What is the advantages and disadvantages of quantitative and qualitative research.
What are the income tax expense and income tax payable : On consolidated financial statements for 2018, what are the income tax expense and income tax currently payable if they choose to file separate returns?
Identical to a product already in the market : You are a product manager planning to launch a new product. For this part of the project, you will select the product you want to focus
How author review of literature supported research purpose : Discuss how the author's review of literature (studies) supported the research purpose/problem. Share something that was interesting to you as you read through.
Planning staffing for the upcoming flu season : A hospital is planning staffing for the upcoming flu season. The hospital has an access to the CDC's Flu Weekly updates but need to better understand
Trace the how the change in the common law of nuisance : Trace the how the change in the common law of nuisance and rise of public sector land regulation facilitated a split in public and private spheres of authority

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd