On January 1, 2013, Piranto acquires 90 percent of Slinton's outstanding shares. Financial information for these two companies for the years of 2013 and 2014 follows:

Assume that a tax rate of 40 percent is applicable to both companies.
a. On consolidated financial statements for 2014, what are the income tax expense and the income tax currently payable if Piranto and Slinton file a consolidated tax return as an affiliated group?
b. On consolidated financial statements for 2014, what are the income tax expense and income tax currently payable if they choose to file separate returns?

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2013 2014 Piranto Company: . . .. (600,000) $(800,000) 500,000 400,000 Unrealized gross profits as of end of year (150,000) (36,000) (18,000) Slinton Company: (200,000) 120,000 (20,000) (250,000) 150,000 (40,000)