n January Abbey acquires percent of Benjamin's outstanding shares. Financial information for these two companies for the years and follows credit balances indicated by parentheses:
Abbey Company:
Sales $ $
Operating expenses
Intraentity gross profits in ending inventory included in above figures
Dividend incomeBenjamin Company
Benjamin Company:
Sales
Operating expenses
Dividends paid
Assume that a tax rate of percent is applicable to both companies.
On consolidated financial statements for 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?
On consolidated financial statements for what are the income tax expense and income tax currently payable if they choose to file separate returns?
