Exercise $4($L$.$O $3)$ Taxation as consolidated company. On May $1,2016,$ Tole Com$-$

pany acquircs a $80\%$ interest in Marco Company for $$400,000.$ The fair valuc of the NCI is

$$100,000.$ The following detcrmination and distribution of excess schedule is prepared:

Determination and Distribution of Excess Schedule

Goodwill, applicable to the parent's interest $($ $$80,000),$ will be amortized over $15$ years for

taxpurposes only.

Tole Company and Marco Company have the following separate income statements for the

year ended December $31,2018$:

During $2018,$ Marco Company pays cash dividends of $$25,000.$

Prepare the entry to record income tax payable on cach company's books. Assume a $30\%$

corporate income tax rate.