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On January 1, 2017, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial information for these two companies for the years of 2017 and 2018

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On January 1, 2017, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial information for these two companies for the years of 2017 and 2018 follows: Abbey Company: Sales Operating expenses Intra-entity gross profits in ending $ (776, 000)(1,114,000) 674,000 488,000 points inventory (included in above figures) (137,000) 164, 000) Dividend incone-Benjamin Company (18, 000) (36,000) Benjanin Company: eBook Print References Sales Operating expenses Dividends paid (207,000) 121,000 (330, 000) 191,000 (20,000) (40,000 Assume that a tax rate of 40 percent is applicable to both companies a. On consolidated financial statements for 2018, what are the income tax expense and the income tax currently payable if Abbey and Benjamin file a consolidated tax return as an affiliated group? b. On consolidated financial statements for 2018, what are the income tax expense and income tax currently payable if they choose to le separote returns? a Income tax expense Income tax payable Chapter 6/7 Homework Questions Help Save&Exit intra-entaty gross protits an ending inventory (included in above figures) Dividend incone-Benjamin Company (137,000) (18, 000) (164, 000) (36, 000) Benjamin company: Sales operating expenses Dividonds paid (207,000) 121,000 (20,000) (330,000) 191,000 (40, 000) Assume that a tax rate of 40 percent is applicable to both companies points a. On consolidated financial statements for 2018, what are the income tax expense and the income tax currently payable if Abbey and eBook Print References Benjamin file a consolidated tax return as an affililated group? b. On consolidated financial statements for 2018, what are the income tax expense and income tax currently payable if they choose to file separate returns? a income tax expense Income tax payable b Income tax expense Income tax payable

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