On May 1, 2016, Tole Company acquires a 80% interest in Marco Company for $400,000. The fair

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On May 1, 2016, Tole Company acquires a 80% interest in Marco Company for $400,000. The fair value of the NCI is $100,000. The following determination and distribution of excess schedule is prepared:

On May 1, 2016, Tole Company acquires a 80% interest

Goodwill, applicable to the parent's interest ($80,000), will be amortized over 15 years for tax purposes only. Tole Company and Marco Company have the following separate income statements for the year ended December 31, 2018:

On May 1, 2016, Tole Company acquires a 80% interest

During 2018, Marco 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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Advanced Accounting

ISBN: 978-1305084858

12th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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