
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question

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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