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.How much will the consolidated group save if it decides to file a consolidated income tax return?

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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.How much will the consolidated group save if it decides to file a consolidated income tax return?

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