Par owns 91.37% of Sub Corp. Par sold depreciable assets to Sub on January 1, Year 3, at a before-tax gain of $48,917.On January 1, Year 4, Sub sold depreciable assets to Par at a before-tax gain of $97,835. Both assets are beingdepreciated over ten (10) years. The tax rate for both companies is 31.95%. What is the total amount of after-taxunrealized profit remaining at the end of Year 47Oa $88,713Ob. $86.549Oc $90,877Od 193,041Oe $84,386

The profit is subjected to deductions such as annual depreciations and post that the tax at the…

Answered: 91.3/% of n January 1, Year 4.…

Business

Accounting

91.3/% of n January 1, Year 4. preciated over ten arealized profit rem

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Par owns 91.37% of Sub Corp. Par sold depreciable assets to Sub on January 1, Year 3, at a before-tax gain of $48,917.
On January 1, Year 4, Sub sold depreciable assets to Par at a before-tax gain of $97,835. Both assets are being
depreciated over ten (10) years. The tax rate for both companies is 31.95%. What is the total amount of after-tax
unrealized profit remaining at the end of Year 47
Oa $88,713
Ob. $86.549
Oc $90,877
Od 193,041
Oe $84,386

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