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On the same date, Yarrow acquired an 80 percent interest in Stookey Company for $480,000. At the acquisition date, the 20 percent noncontrolling interest fair

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On the same date, Yarrow acquired an 80 percent interest in Stookey Company for $480,000. At the acquisition date, the 20 percent noncontrolling interest fair value was $120,000. Any excess fair value was attributed to a fully amortized copyright that had a remaining life of 10 years. Although both investments are accounted for using the initial value method, nelther Yarrow nor Stookey has distributed dividends since the acquisition date. Travers has a policy to declare and pay cash dividends each year equal to 40 percent of its separate company operating earnings. Reported income totals for 2020 follow: The following are the 2021 financial statements for these three companies (credit balances indicated by parentheses). Stookey has transferred numerous amounts of inventory to Yarrow since the takeover amounting to $114,000(2020) and $142,500(2021). These transactions include the same markup applicable to Stookey's outside sales. In each year, Yarrow carried 20 percent of this inventory Into the succeeding year before disposing of it. An effective tax rate of 21 percent is applicable to all companies. All dividend declarations are paid in the same period. a. Prepare the business combination's 2021 consolidation worksheet; ignore income tax effects. b. Determine the amount of income tax for Travers and Yarrow on a consolidated tax return for 2021. c. Determine the amount of Stookey's income tax on a separate tax return for 2021 . d. Based on the answers to requirements (b) and (c), What journal entry does this combination make to record 2021 income tax? Complete this question by entering your answers in the tabs below. a. Prepare the business combination's 2021 consolidation worksheet, ignore income tax effects. b. Determine the amount of income tax for Travers and Yarrow on a consolidated tax return for 2021 . c. Determine the amount of Stookey's income tax on a separate tax return for 2021 . d. Based on the answers to requirements (b) and (c). what joumal entry does this combination make to record 2021 income tax? Complete this question by entering your answers in the tabs below. Based on the answers to requirements (b) and (c), what journal entry does this combination make to record 2021 income tax? (If no entry is required for a transaction/event, select 'No journal entry required' in the first account field. Round your intermediate and fina: answer to the nearest whole dollar.) Journal entry worksheet On the same date, Yarrow acquired an 80 percent interest in Stookey Company for $480,000. At the acquisition date, the 20 percent noncontrolling interest fair value was $120,000. Any excess fair value was attributed to a fully amortized copyright that had a remaining life of 10 years. Although both investments are accounted for using the initial value method, nelther Yarrow nor Stookey has distributed dividends since the acquisition date. Travers has a policy to declare and pay cash dividends each year equal to 40 percent of its separate company operating earnings. Reported income totals for 2020 follow: The following are the 2021 financial statements for these three companies (credit balances indicated by parentheses). Stookey has transferred numerous amounts of inventory to Yarrow since the takeover amounting to $114,000(2020) and $142,500(2021). These transactions include the same markup applicable to Stookey's outside sales. In each year, Yarrow carried 20 percent of this inventory Into the succeeding year before disposing of it. An effective tax rate of 21 percent is applicable to all companies. All dividend declarations are paid in the same period. a. Prepare the business combination's 2021 consolidation worksheet; ignore income tax effects. b. Determine the amount of income tax for Travers and Yarrow on a consolidated tax return for 2021. c. Determine the amount of Stookey's income tax on a separate tax return for 2021 . d. Based on the answers to requirements (b) and (c), What journal entry does this combination make to record 2021 income tax? Complete this question by entering your answers in the tabs below. a. Prepare the business combination's 2021 consolidation worksheet, ignore income tax effects. b. Determine the amount of income tax for Travers and Yarrow on a consolidated tax return for 2021 . c. Determine the amount of Stookey's income tax on a separate tax return for 2021 . d. Based on the answers to requirements (b) and (c). what joumal entry does this combination make to record 2021 income tax? Complete this question by entering your answers in the tabs below. Based on the answers to requirements (b) and (c), what journal entry does this combination make to record 2021 income tax? (If no entry is required for a transaction/event, select 'No journal entry required' in the first account field. Round your intermediate and fina: answer to the nearest whole dollar.) Journal entry worksheet

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