Taxation as consolidated company. On May 1, 2016, Taft Company acquires a 80% interest in Marcus Company for $400,000. The fair value of the NCI is $100,000. The following determination and distribution of excess schedule is prepared: 11eb5b63_5757_e577_bcf8_db6fb67a7e4d_SM1534_00 During 2018,Marcus 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.

Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

Edition 11ISBN: 978-0538480284

Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

Edition 11ISBN: 978-0538480284

Exercise 19

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

During 2018,Marcus 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.

Explanation

Verified

Journal entry in the books of M company ...