Question
Fielding Sporting Goods Corporation (FSGC) is a calendar-year corporation. What is the Book to Tax Reconciliation's Adjustments, and Taxable Income? 1) FSGC owns 40 percent
Fielding Sporting Goods Corporation (FSGC) is a calendar-year corporation. What is the Book to Tax Reconciliation's Adjustments, and Taxable Income?
1) FSGC owns 40 percent of the outstanding Magnolia Corp. (MC) stock. Magnolia Corp. reported $1,000,000 of income for the year. FSGC accounted for its investment in MC under the equity method and it recorded its pro rata share of MCs earnings for the year. MC also distributed a $150,000 dividend to FSGC.
| Description | Book Income | Adjustments (Debit) | Adjustments (Credit) | Taxable Income |
| Income From Investment in Corporate Stock | 400,000 | |||
| Dividends Received Deduction |
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
4th edition
978-0073369709, 73369705, 78025370, 978-0077444846, 77444841, 978-0078025372
