Ch 7 HW i Saved Help Save & Exit Submit Check my work 8 On January 1, 2020, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial information for these two companies for the years 2020 and 2021 follows (credit balances indicated by parentheses): 2020 2021 Abbey Company : 14 Sales $ (860, 000) $ (964, 000) points Operating expenses 572, 000 636, 000 Intra-entity gross profits in ending inventory Skipped (included in above figures) (193, 000) (226, 000) Dividend income-Benjamin Company (13, 500 (31, 500) Benjamin Company : Sales (263, 000) (325, 000) eBook Operating expenses 158, 000 164, 000 Dividends paid (15, 000) (35, 000) Print References Assume that a tax rate of 21 percent is applicable to both companies. a. On consolidated financial statements for 2021, what are the income tax expense and the income tax currently payable if Abbey and Benjamin file a consolidated tax return as an affiliated group? b. On consolidated financial statements for 2021, what are the income tax expense and income tax currently payable if they choose to file separate returns? Amount a. Income tax expense Income tax payable b. Income tax expense Income tax payable Mc Graw Hil 4 3:54