FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Fielding Sporting Goods Corporation
(FSGC) is a calendar-year corporation. What
is the Book to Tax Reconciliation's
Adjustments, and Taxable Income?
1) FSGC owns 40 percent of the
outstanding Magnolia Corp. (MC) stock.
Magnolia Corp. reported $1,000,000 of
income for the year. FSGC
accounted for its investment in MC under
the equity method and it recorded its pro
rata share of MC's earnings for the year. MC
also
distributed a $150,000 dividend to FSGC.
Description
Вook
Income
Adjustments Adjustments
(Debit)
(Credit)
Тахable
Income
Income From
Investment in
400,000
Corporate
Stock
Dividends
Received
Deduction
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Transcribed Image Text:Fielding Sporting Goods Corporation (FSGC) is a calendar-year corporation. What is the Book to Tax Reconciliation's Adjustments, and Taxable Income? 1) FSGC owns 40 percent of the outstanding Magnolia Corp. (MC) stock. Magnolia Corp. reported $1,000,000 of income for the year. FSGC accounted for its investment in MC under the equity method and it recorded its pro rata share of MC's earnings for the year. MC also distributed a $150,000 dividend to FSGC. Description Вook Income Adjustments Adjustments (Debit) (Credit) Тахable Income Income From Investment in 400,000 Corporate Stock Dividends Received Deduction
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