Patton StevensOperating income$2,000,000 $400,000 Divindends paid 120,000 50,000 Income tax rate 30% 30%??Patton's operating income excludes income from the investment in Stevens, but includes $150,000 of gross profit on intra-entity transfers of inventory and the inventory is still held by Stevens at the end of the year. Patton uses the initial value method to account for the investment in Stevens.?How much will the consolidated group save if it decides to file a consolidated income tax return?
What will be an ideal response?
| Total paid if separate returns are filed | $ | 720,000 | |
| Total paid if consolidated return are filed | 675,000 | ||
| Savings if consolidated return are filed | $ | 45,000 | |
You might also like to view...
A retail store buyer who dwells on trivial details like the placement of buttons or the stitching on the collar as the reason for not buying, more than likely has ________ objections.
A. pre-emptive B. stalling C. forestalling D. no-need E. hidden
Ground rules that define appropriate and inappropriate behavior in a team are called:
a. Agendas b. Goals c. Norms d. Conflicts
A writ issued by a superior court to an inferior court ordering that some act not be
done is called a writ of certiorari. a. True b. False
An awareness of courtesy and etiquette A) will ensure one's popularity in an office setting
B) ?is not important to hiring managers. C) ?is needed for only high-level business executives. D) ?can improve an individual's chances of being hired and promoted.