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Part 1 taxes
Alpha owns 90% of the voting stock of Beta
Information about 2023 is as follows.
Alpha Beta income b4 tax unconsolidated Alpha 300,000 Beta 100,000
tax rate: income 1 to 150,000 20%
income 150001 to 900,000 25%
income 900001 and above 30%
REQUIRED USING THE 2 APPROACHES FOR ALLOCATING INCOME TAX DETERMINE
A) income attributable to non-controlling interest
B) income attributable to parent
Part 2:
EPS Gamma Company owns 100% (1000 of the 1000 shares) of Delta stock. Information about Gamma and Delta are as follows:
Gamma Delta Situation A:
The preferred stock is cumulative non-convertible
Common stock (shares) 10,000 1000
Situation B:
the preferred stock is cumulative and convertible. Preferred stock 10% $100 par (shares) 0 100 it can be converted into 3 shares of common stock.
Net Income (unconsolidated) 50,000 5000
REQUIRED:
1) Determine Gamma's EPS in situation A
2) Determine Gamma's EPS in situation B
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