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Attached is the question that I need help with. It does not show up well if I just post it directly into this box. The

Attached is the question that I need help with. It does not show up well if I just post it directly into this box. The question is 5 parts about Income Tax and Income Tax Expense. image text in transcribed

Problem 7-20 (LO 7-5, 7-6) -2-2 http://ezto.mhedu Clarke has a controlling interest in Rogers's outstanding stock. At the current year-end, the following information has been accumulated for these two companies: Clarke Rogers Separate Operating Income Dividends Paid $535,000 $95,000 (includes a $185,000 net unrealized gross profit on intra-entity inventory transfers) 480,000 80,000 Clarke uses the initial value method to account for the investment in Rogers. The separate operating income figures just presented include neither dividend nor other investment income. The effective tax rate for both companies is 40 percent. a. Assume that Clarke owns 100 percent of Rogers's voting stock and is filing a consolidated tax return. What income tax amount does this affiliated group pay for the current period? Income Tax = b. Assume that Clarke owns 92 percent of Rogers's voting stock and is filing a consolidated tax return. What amount of income taxes does this affiliated group pay for the current period? Income Tax = c. Assume that Clarke owns 80 percent of Rogers's voting stock, but the companies elect to file separate tax returns. What is the total amount of income taxes that these two companies pay for the current period? Total Amount of Income Tax = d. Assume that Clarke owns 70 percent of Rogers's voting stock, requiring separate tax returns. What is the total amount of income tax expense to be recognized in the consolidated income statement for the current period? Total Amount of Income Tax Expense = e. Assume that Clarke owns 70 percent of Rogers's voting stock so that separate tax returns are required. What amount of income taxes does Clarke have to pay for the current year? Income Tax =

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