Purchase Solution

Consolidated Financial Statements - Income Taxes

Not what you're looking for?

Ask Custom Question

Cremmins, Inc. owns 60 percent of Anderson. During the current year, Anderson reported net income of $200,000 but paid a total cash dividend of only $40,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 30 percent.

a) $5,760
b) $9,600
c) $12,840
d) $28,800

Purchase this Solution
Solution Summary

This solution provides a detailed, step by step explanation of the given accounting problem regarding income taxes.

Solution Preview

** Please see the attached file for the complete solution response **

Cremmins, Inc.'s Net Income $ 200,000.00 ...

Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Motivation

This tests some key elements of major motivation theories.

Introduction to Finance

This quiz test introductory finance topics.

View More Free Quizzes
Related BrainMass Solutions

  • Components of Different Financial Statements

    Consolidated statement of income showing net sales, gross profit, operating expenses, operating income, income taxes, interest, net income, basic and diluted earnings per share. 2. consolidated balance sheet showing current assets, current liabilities

  • Denbury Resources Inc.

    Total revenues 285,111 Less: Total Expenses 178,573 Income before income taxes 106,538 Income tax provision (benefits) Current income taxes (0.7865%) 838 Deferred income taxes 24,184 Net income 81,516 This solution is

  • Question about Apple Computers: Questions on Financial statements

    -- Restructuring costs --------- Total Operating Exp $1,310 Operating income $ 386 Total interest and other Income net 317 Income before provision for Income taxes 703 Provision for income Taxes (15%) 105.4 Net income $ 597.6 ?

  • Compare Financial Statements of Ascension Health and HCA, Inc.

    Review the companies' Balance Sheets, Statements of Income/Operations, and Statements of Cash Flows. Identify and describe five similarities and five differences between the two companies' financial statements.

  • Deferred Tax Liabilities and Assets

    Explain the objectives of accounting for income taxes in general purpose financial statements. b.

  • Purpose of Four Financial Statements

    taxes, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 863 $ 194 $ 17 See accompanying Notes to Consolidated Financial Statements.

  • Clark and Rogers Consolidated Financial Statements: Compute income and tax

    231610 Clark and Rogers Consolidated Financial Statements: Compute income and tax Clark has a controlling interest in Rogers' outstanding stock.

  • Examination of Financial Statements

    165326 Examining Financial Statements - Landry's Restaurants Please help with the following: Using the financial statements of Landry's Restaurants located in Appendix A of the text, Fundamentals of Financial Accounting 1st ed., by Phillips, Libby,

  • Proprietary, Parent Company and Entity Theory

    In the preparation of the consolidated financial statements, a pro rata consolidation of the assets and liabilities of the subsidiaries are consolidated by the parent company.

View More Related Solutions