In: Accounting
Up and its 80 percent–owned subsidiary (Down) reported the following figures for the year ending December 31, 2018. Down paid dividends of $43,000 during this period.
Up | Down | ||||||
Sales | $ | (860,000 | ) | $ | (430,000 | ) | |
Cost of goods sold | 430,000 | 201,100 | |||||
Operating expenses | 249,400 | 86,000 | |||||
Dividend income | (34,400 | ) | 0 | ||||
Net income | $ | (215,000 | ) | $ | (142,900 | ) |
in 2017, intra-entity gross profits of $43,000 on upstream transfers of $129,000 were deferred into 2018. In 2018, intra-entity gross profits of $56,900 on upstream transfers of $156,800 were deferred into 2019.
What amounts appear for each line in a consolidated income statement?
What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 30 percent.
What amounts appear for each line in a consolidated income statement?
What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 30 percent.
What amounts appear for each line in a consolidated income statement?
What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 30 percent.