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Please bold answer Martin has a controlling Interest in Rowen's outstanding stock. At the current year-end, the following Information has been accumulated for these two
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Martin has a controlling Interest in Rowen's outstanding stock. At the current year-end, the following Information has been accumulated for these two companies Martin Dividends Paid $95, eee Separate Operating Income $535,eee (includes a $185,888 net gross profit in intra-entity ending inventory) 380, eee Rowen se,eee Martin uses the Initial value method to account for the investment In Rowen. The separate operating Income figures Just presented Include neither dividend nor other Investment Income. The effective tax rate for both companles is 21 percent. a. Assume that Martin owns 100 percent of Rowen's voting stock and is filing a consolidated tax return. What Income tax amount does this affiliated group pay for the current period? b. Assume that Martin owns 92 percent of Rowen's voting stock and is filling a consolidated tax return. What amount of Income taxes does this affiliated group pay for the current period? C Assume that Martin owns 65 percent of Rowen's voting stock, but the companies elect to file separate tax returns. What is the total amount of Income taxes that these two companies pay for the current period? d. Assume that Martin owns 70 percent of Rowen's voting stock requiring separate tax returns. What is the total amount of Income tax expense to be recognized in the consolidated Income statement for the current period? (Round your intermediate calculations and final answer to nearest whole dollar amount.) e. Assume that Martin owns 70 percent of Rowen's voting stock so that separate tax returns are required. What amount of Income taxes does Martin have to pay for the current year? Amount b. b Income tax Income tax Total amount of income tax Total amount of income tax expense Income tax d d. eStep by Step Solution
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