Poplar Corporation owns 100% of Slater Company (a nonincludible U.S. entity). Slater paid interest to Poplar of $55,000 during the year. Slater's net income for the year was $490,000 afterdeducting the $55,000 interest paid to Poplar. Poplar's net income for the year was $1,875,000,which included the $55,000 interest income received from Slater. Poplar eliminated theintercompany interest in financial statement consolidation elimination entries. Therefore, Poplar's consolidated book income is $2,365,000 ($1,875,000 - $55,000 + $490,000 + $55,000). 

What amount would be reported by Poplar on its consolidated Schedule M-3 as net income (loss) perincome statement of includible corporations?  

Answer rating: 100% (QA)

In the given scenario Poplar Corporation owns 100 of Slater Company and certain intercompany transac... View the full answer