Question: On May 1 2016 Taft Company acquires a 80 interest

On May 1, 2016, Taft Company acquires a 80% interest in Marcus Company for $400,000. The fair value of the NCI is $100,000. The following determination and distribution of excess schedule is prepared:
Goodwill, applicable to the parent’s interest ($64,000), will be amortized over 15 years for tax purposes only.
Taft Company and Marcus Company have the following separate income statements for the year ended December 31, 2018:
During 2018, Marcus Company pays cash dividends of $25,000.
Prepare the entry to record income tax payable on each company’s books. Assume a 30% corporate income tax rate.

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  • CreatedApril 13, 2015
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