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at a before tax gain of $94,8 mpanies is 31.47% How mue Sub in Year 3?

at a before tax gain of $94,8 mpanies is 31.47% How mue Sub in Year 3?

FINANCIAL ACCOUNTING
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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M11.

 

Par owns 90.89% of Sub Corp. Par sold depreciable assets to Sub on January 1, Year 3, at a before tax gain of $47.409 On January 1, Year 4, Sub sold depreciable assets to Par at a before tax gain of $94,819. Both assets are being depreciated over ten (10) years. The tax rate for both companies is 31.47% How much after-tax intercompany gain or loss was realized during Year 4 from Par's sale of assets to Sub in Year 3? O a $3,249 O b. $3,493 Oc. $3,330 O d. $3,411 O $3,574
Transcribed Image Text:Par owns 90.89% of Sub Corp. Par sold depreciable assets to Sub on January 1, Year 3, at a before tax gain of $47.409 On January 1, Year 4, Sub sold depreciable assets to Par at a before tax gain of $94,819. Both assets are being depreciated over ten (10) years. The tax rate for both companies is 31.47% How much after-tax intercompany gain or loss was realized during Year 4 from Par's sale of assets to Sub in Year 3? O a $3,249 O b. $3,493 Oc. $3,330 O d. $3,411 O $3,574
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