Florrick Co. owns 85% of Bishop Inc. The two companies file a consolidated income tax return and Florrick uses the initial value method to account for the investment. The following information is available from the two companies' financial statements: The income tax rate was 40%.What is the amount of taxable income reported on the consolidated income tax return?

Question

Florrick Co. owns 85% of Bishop Inc. The two companies file a consolidated income tax return and Florrick uses the initial value method to account for the investment. The following information is available from the two companies' financial statements:  The income tax rate was 40%.What is the amount of taxable income reported on the consolidated income tax return?

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The Answer of Florrick Co. owns 85% of Bishop Inc. The two companies file a consolidated income tax return and Florrick uses the initial value method to account for the investment. The following information is available from the two companies' financial statements:  The income tax rate was 40%.What is the amount of taxable income reported on the consolidated income tax return?