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Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period, the two companies individually reported the following income ( exclusive
Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period, the two companies individually reported the following income exclusive of any investment income:
Lake $
Boxwood
Lake paid a $ cash dividend during the current year, and Boxwood distributed $
Boxwood sells inventory to Lake each period. Intraentity gross profits of $ were present in Lake's beginning inventory for the current year, and its ending inventory carried $ in intraentity gross profits.
View each of the following questions as an independent situation. The effective tax rate for both companies is percent.
If Lake owns a percent interest in Boxwood, what total income tax expense must be reported on a consolidated income statement for this period? Round the intermediate calculations and final answers to the nearest dollar amount.
If Lake owns a percent interest in Boxwood, what total amount of income taxes must be paid by these two companies for the current year? Round the intermediate calculations and final answers to the nearest dollar amount.
If Lake owns a percent interest in Boxwood and a consolidated tax return is filed, what amount of income tax expense would be reported on a consolidated income statement for the year?
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