a
Introduction:When the companies in the consolidated group files separate tax returns, intercompany income accruals and dividend transfers must be consolidated in computing income tax expense for the period. If an investor and an investee files separate tax returns, the investor is taxed on the dividends received from the investee rather than on the amount of investment income reported.
The time period when an inventory transfer cause consolidated income tax expense to be higher than the amount paid.
b
Introduction: When the companies in the consolidated group files separate tax returns, intercompany income accruals and dividend transfers must be consolidated in computing income tax expense for the period. If an investor and an investee files separate tax returns, the investor is taxed on the dividends received from the investee rather than on the amount of investment income reported.
The reporting of overpayment in consolidated financial statement, when tax payments are higher than tax expenses.
c
Introduction: When the companies in the consolidated group files separate tax returns, intercompany income accruals and dividend transfers must be consolidated in computing income tax expense for the period. If an investor and an investee files separate tax returns, the investor is taxed on the dividends received from the investee rather than on the amount of investment income reported.
The type of transfers other than inventory transfers cause consolidated income tax expense to be less than income tax paid.
d
Introduction: When the companies in the consolidated group files separate tax returns, intercompany income accruals and dividend transfers must be consolidated in computing income tax expense for the period. If an investor and an investee files separate tax returns, the investor is taxed on the dividends received from the investee rather than on the amount of investment income reported.
The type of transfers other than inventory will cause consolidated income tax expense to be more than income taxes paid.
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Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning