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Select correct answer using percentage allocation method . River Co. owned 80% of Boat Inc. The two companies filed a consolidated income tax return and
Select correct answer using percentage allocation method .
River Co. owned 80% of Boat Inc. The two companies filed a consolidated income tax return and River used the initial value method to account for the investment. The following information was available from the two companies' financial statements: Operating income included net unrealized gains, which are associated with transfers of inventories between the two companies, but it did not include dividends received from a subsidiary. The income tax rate was 30%. What was the amount of income tax expense that should have been assigned to Boat using the percentage allocation method? $31, 500 $32, 750 $36,000 $32, 660 $30, 390Step by Step Solution
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