Arriba and its 80 percent-owned subsidiary (Abajo) reported the following figures for the year ending December 31, 2021 (creditbalances indicated by parentheses). Abajo paid dividends of $49,000 during this period.SalesCost of goods soldOperating expensesDividend incomeNet incomeArriba$(980,000)Abajo$(490,000)490,000229,300284,20098,000(39,200)0$(245,000) $(162,700)In 2020, Intra-entity gross profits of $49,000 on upstream transfers of $147,000 were deferred into 2021. In 2021 intra-entity grossprofits of $64,700 on upstream transfers of $178,400 were deferred into 2022.a. What amounts appear for each line in a consolidated income statement for the year ending December 31, 2021?b. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assumethat the tax rate is 21 percent.(For all requirements, Input all amounts as positive values.)SalesCost of goods soldOperating expensesDividend incomeAmount In 2020, Intra-entity gross profits of $49,000 on upstream transfers of $147,000 were deferred into 2021. In 2021 Intra-entity grossprofits of $64,700 on upstream transfers of $178,400 were deferred into 2022.a. What amounts appear for each line in a consolidated income statement for the year ending December 31, 2021?b. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assumethat the tax rate is 21 percent.(For all requirements, Input all amounts as positive values.)a.SalesCost of goods soldOperating expensesDividend incomeConsolidated net incomeNoncontrolling interest in consolidated net incomeControlling interest in consolidated net incomeb.Income tax expenseAmount

Consolidated income statement :A consolidated income statement is a financial statement that…

a. What amounts appear for each line in a consolidated income statement for the year ending December 31, 2021? b. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 21 percent.

a. What amounts appear for each line in a consolidated income statement for the year ending December 31, 2021? b. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 21 percent.

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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am . 102.
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