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Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik
Edition 12ISBN: 978-0077862220Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik
Edition 12ISBN: 978-0077862220 Exercise 44
Up and its 80 percent-owned subsidiary (Down) reported the following figures for the year ending December 31, 2014. Down paid dividends of $30,000 during this period.
In 2013, unrealized gross profits of $30,000 on upstream transfers of $90,000 were deferred into 2014. In 2014, unrealized gross profits of $40,000 on upstream transfers of $110,000 were deferred into 2015.
a. What amounts appear for each line in a consolidated income statement Explain your computations.
b. What income tax expense should appear on the consolidated income statement if each company files a separate return Assume that the tax rate is 30 percent.
In 2013, unrealized gross profits of $30,000 on upstream transfers of $90,000 were deferred into 2014. In 2014, unrealized gross profits of $40,000 on upstream transfers of $110,000 were deferred into 2015.
a. What amounts appear for each line in a consolidated income statement Explain your computations.
b. What income tax expense should appear on the consolidated income statement if each company files a separate return Assume that the tax rate is 30 percent.
Explanation
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U company does the Parent Company of Com...
Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik
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