Garrison holds a controlling interest in Robertson’s outstanding stock. For the current year, the following information has been gathered about these two companies: Garrison Robertson
Separate $300,000 $200,000
operating income (includes $50,000 intra-entity
gross profit in ending inventory)
Dividends paid ...32,000 50,000
Tax rate . . . . . . . . . 40% 40%

Garrison uses the initial value method to account for the investment in Robertson. Garrison’s separate operating income figure does not include dividend income for the current year.
a. Assume that Garrison owns 80 percent of Robertson’s voting stock. On a consolidated tax return, what amount of income tax is paid?
b. Assume that Garrison owns 80 percent of Robertson’s voting stock. On separate tax returns, what total amount of income tax is paid?
c. Assume that Garrison owns 70 percent of Robertson’s voting stock. What total amount of income tax expense does a consolidated income statement recognize?
d. Assume that Garrison holds 60 percent of Robertson’s voting stock. On a separate income tax return, what amount of income tax does Garrison have to pay?

Answer: question no. 1 -a. yes, the sides are in the ratio 2 : 5.question no. 2 -b. 59°question no. 3 -c. angles x and y are remote interior angles.question no. 4 -d. 90°, 45° and 45°question no. 5 -b. mn and qrstep-by-step explanation: question no. 1 -rs : xu = 3 : 7.5 = 2 : 5rt : x? = 6.4 : 16 = 2 : 5st : u? = 6 : 15 = 2 : 5as the ratios of all sides are equivalent, the triangles must be congruent and the sides must be proportional.therefore, the answer is: a. yes, the sides are in the ratio 2 : 5.question no. 2 -in the second diagram, angle b is the only letter not shown. therefore, the number must be equivalent to angle b.if we substitute the value of angle b as being 22° in the first diagram, we can now use the angle sum of a triangle to obtain the value of angle a.angle sum of a triangle = 180°therefore: let angle a = aa + 99 + 22 = 180a = 180 - 99 - 22a = 59°therefore, the answer is: b. 59°question no. 3 -angles x and y don't share the vertex of the triangle with the exterior angle w. remote interior angles don't share a vertex of a triangle with an exterior angle. this means that angles x and y are remote interior angles.therefore, the answer is: c. angles x and y are remote interior angles.question no. 4 -the sum of all interior angles of a triangle must be equivalent to 180°.90°, 45° and 45° are the only set of angle measures that are equivalent to 180°.therefore, the answer is: d. 90°, 45° and 45°question no. 5 -the only pair of sides stated in the options which are corresponding are mn and qr.therefore, the answer is: b. mn and qr.