Wilkins Inc. owned 60% of Motumbo Co. During the current year, Motumbo reported net income of...
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Wilkins Inc. owned 60% of Motumbo Co. During the current year, Motumbo reported net income of $280,000 but paid a total cash dividend of only $56,000. Required: Assuming an income tax rate of 30%, what amount of Deferred Income Tax Liability arising this year must be recognized in the consolidated balance sheet? Net income of Kurton Net income of Luvyn: Amortization Consolidated net income Non-controlling interest share of net income Controlling interest share of net income Luvyn Corp's operating income Dividend income Less: amortization of excess patent allocation Luvyn Corp.'s net income $55,000 5 years See below Non-controlling interest percentage Non-controlling interest in Luvyn Corp.'s net income Required: $70,000 (11.000) $55,000.5 years $224,000 $9.000 $283,000 7,860 $275.140 $70,000 19,600 (11.000) $78,600 10% $7.860 During the current year, Kurton reported operating income of $224,000 and dividend income from Luvyn of $37,800. At the same time, Luvyn reported operating income of $70,000 and dividend income from Kurton of $19,600. Prepare a schedule to show Kurton's share of controlling interest in Luvyn's net income. Wilkins Inc. owned 60% of Motumbo Co. During the current year, Motumbo reported net income of $280,000 but paid a total cash dividend of only $56,000. Required: Assuming an income tax rate of 30%, what amount of Deferred Income Tax Liability arising this year must be recognized in the consolidated balance sheet? Net income of Kurton Net income of Luvyn: Amortization Consolidated net income Non-controlling interest share of net income Controlling interest share of net income Luvyn Corp's operating income Dividend income Less: amortization of excess patent allocation Luvyn Corp.'s net income $55,000 5 years See below Non-controlling interest percentage Non-controlling interest in Luvyn Corp.'s net income Required: $70,000 (11.000) $55,000.5 years $224,000 $9.000 $283,000 7,860 $275.140 $70,000 19,600 (11.000) $78,600 10% $7.860 During the current year, Kurton reported operating income of $224,000 and dividend income from Luvyn of $37,800. At the same time, Luvyn reported operating income of $70,000 and dividend income from Kurton of $19,600. Prepare a schedule to show Kurton's share of controlling interest in Luvyn's net income.
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1 Calculate the Deferred Income Tax Liability arising this year Motumbo Cos net income is 280000 and ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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