Denver Corporation owns 25 percent of the voting shares of Alamos Corporation.In 2008,Alamos reported net income of $120,000 and paid dividends of $30,000.Denver uses the equity method to account for this investment.Denver reported taxable income of $160,000 on its separate operations and has an effective tax rate of 40 percent.There is an 80 percent exemption on intercompany dividends.
-Based on the preceding information,income tax expense for Denver for the year 2008 will be:

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The Answer of Denver Corporation owns 25 percent of the voting shares of Alamos Corporation.In 2008,Alamos reported net income of $120,000 and paid dividends of $30,000.Denver uses the equity method to account for this investment.Denver reported taxable income of $160,000 on its separate operations and has an effective tax rate of 40 percent.There is an 80 percent exemption on intercompany dividends.
-Based on the preceding information,income tax expense for Denver for the year 2008 will be:

Denver Corporation Owns 25 Percent of the Voting Shares of Alamos