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: 2017 2018 Abbey Company: Sales $ (762,000) $(1,006,000) Operating expenses 482,000 584,000 Intra-entity gross profits in ending inventory (included in above figures) (162,000) (184,000) Dividend income-Benjamin Company (13,500) (31,500) Benjamin Company: Sales (283,000) (347,000) Operating expenses 132,000 227,000 Dividends paid (15,000) (35,000) 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 file separate returns? Answer is complete but not entirely correct. a. Income tax expense Income tax payable Income tax expense Income tax payable S 208,000 $ 208,000 $ 216,800 $ 160,000 b