Garrison holds a controlling interest in Robertsons outstanding stock. For the current year, the following information has been gathered about these two companies:

		Garrison	Robertson
Separate operating income		$300,000		$	200,000
		(includes a $50,000 net unrealized gain on anintra-entity transfer)
Dividends paid		32,000			50,000
Tax rate		40%			40	%

Garrison uses the initial value method to account for the investment in Robertson. Garrisons separate operating income figure does not include dividend income for the current year.

a.	Assume that Garrison owns 80 percent of Robertsons voting stock. On a consolidated tax return, what amount of income tax is paid?

b.	Assume that Garrison owns 80 percent of Robertson's voting stock. On separate tax returns, what total amount of income tax is paid?

c.	Assume that Garrison owns 70 percent of Robertson's voting stock. What total amount of income tax expense does a consolidated income statement recognize?

d.	Assume that Garrison holds 60 percent of Robertson's voting stock. On a separate income tax return, what amount of income tax does Garrison have to pay?