What effect will the elimination of the unrealized intercompany gain (in the preparation of the consolidated income statement) have on consolidated income tax expense for 2015?

Question

Quizplus · Accepted Answer

Elimination of the unrealized intercompany gain will reduce consolidated net income by $24,000. As a result, the taxable income will also decrease by $24,000, which will lead to a reduction in income tax expense.

What Effect Will the Elimination of the Unrealized Intercompany Gain