On January 1, 2012, Piranto acquires 90 percent of Slinton's outstanding shares. Financial information for these two companies for the years of 2012 and 2013 follows:

Assume that a tax rate of 40 percent is applicable to both companies.
a. On consolidated financial statements for 2013, what are the income tax expense and the income tax currently payable if Piranto and Slinton file a consolidated tax return as an affiliated group?
b. On consolidated financial statements for 2013, what are the income tax expense and income tax currently payable if they choose to file separate returns?

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2012 2013 Piranto Company: .. . $(600,000) 400,000 $(800,000) 500,000 Unrealized gross profits as of end of year (150,000) (36,000) (18,000) Slinton Company: (200,000) 120,000 (20,000) (250,000) 150,000 (40,000) Dividends paid