5. Pop Corporation and its 100 percent–owned domestic subsidiary, Son Corporation, are classified as an affiliated group for tax purposes. During the current year, Son pays $160,000 in cash dividends. Assuming a 34 percent income tax rate, how much income tax expense on this dividend should be reported in the consolidated income statement of Pop Corporation and Subsidiary?

a $0 b $54,400 c $10,880 d $5,440 E 10-14

[Tax] Compare separate and consolidated tax filings