On January 1, 2013, Piranto acquires 90 percent of Slintons outstanding shares. Financial information for these two companies for the years of 2013 and 2014 follows:

Note: Parentheses indicate a credit balance.

		2013			2014
Piranto Company:
Sales	$	(823,000	)	$	(1,122,000	)
Operating expenses		584,000			698,000
Unrealized gross profits as of end of year (included in above figures)		(202,000	)		(234,000	)
Dividend incomeSlinton Company		(18,000	)		(36,000	)
Slinton Company:
Sales		(265,000	)		(349,000	)
Operating expenses		165,000			199,000
Dividends paid		(20,000	)		(40,000	)

Assume that a tax rate of 40 percent is applicable to both companies.

a.	On consolidated financial statements for 2014, what are the income tax expense and the income tax currently payable if Piranto and Slinton file a consolidated tax return as an affiliated group?
	Income tax expense: Income Tax payable:

b.	On consolidated financial statements for 2014, what are the income tax expense and income tax currently payable if they choose to file separate returns?

Income Tax Espense:

Income Tax payable: