Pappas Company owns 85 percent of Sunny Company's stock and 80 percent of Sibble Company's stock. All acquisitions were made at book value. The fair values of noncontrolling interests at the time of acquisition were equal to the proportionate share of the book values of the companies. The companies file a consolidated tax return each year and in 20X9 paid a total tax of $112,000. Each company is involved in a number of intercompany inventory transfers each period. Information on the companies' activities for 20X9 is as follows: 20X9 ReportedOperating Income20X8 IntercompanyProfit Realized in 20X920X9 Intercompany ProfitNot Realized in 20X9Pappas Company$155,000 $25,000 $15,000 Sunny Company 35,000 10,000 6,000 Sibble Company 60,000 28,000 12,000 Pappas Company does not
record income tax expense on income from subsidiaries because a consolidated tax return is filed.Based on the information provided, what amount of income tax expense should be assigned to Sibble?
A. $19,200
B. $30,400
C. $24,000
D. $35,200
Answer: B
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Work Room Company purchased equipment for $45,000. Total depreciation of $36,000 was recorded. On January 1, 2019, Work Room exchanged the equipment for new equipment, paying $65,000 cash. The market value of the new equipment is $65,000. Prepare the journal entry to record this transaction. Assume the exchange had commercial substance. Omit explanation.
What will be an ideal response?
When a treaty and a right declared under a subsequent federal statute conflict, the treaty must prevail
a. True b. False Indicate whether the statement is true or false
In the case United States v. Morrison referenced in the text, the U.S. Supreme Court held that the Violent Crimes Against Women Act was:
a. validly enacted under the authority of the due process clause of the U.S. Constitution. b. validly enacted under the authority of the equal protection clause of the U.S. Constitution. c. not valid because it discriminated against men. d. invalid because Congress exceeded its authority under the Commerce Clause of the U.S. Constitution.
LAN Extension is an application of wireless technology in situations
where it may be used as an alternative to installing additional wired LAN. Indicate whether the statement is true or false