Patton's operating income excludes income from the investment in Stevens, but includes $150,000 of gross profit on intra-entity transfers of inventory and the inventory is still held by Stevens at the end of the year. Patton uses the initial value method to account for the investment in Stevens.Assume Patton owns 90% of the voting stock of Stevens and they each file separate income tax returns. What amount of total income tax would be paid?

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The Answer of  Patton's operating income excludes income from the investment in Stevens, but includes $150,000 of gross profit on intra-entity transfers of inventory and the inventory is still held by Stevens at the end of the year. Patton uses the initial value method to account for the investment in Stevens.Assume Patton owns 90% of the voting stock of Stevens and they each file separate income tax returns. What amount of total income tax would be paid?

Patton's Operating Income Excludes Income from the Investment in Stevens