REFERENCE: Ref.07_09 White Company Owns 60% of Cody Company.Separate Tax Returns Are

question 103

Multiple Choice

REFERENCE: Ref.07_09
White Company owns 60% of Cody Company.Separate tax returns are required.For 2009,White's operating income (excluding taxes and any income from Cody) was $300,000 while Cody reported a pretax income of $125,000.During the period,Cody paid a total of $25,000 in cash dividends,$15,000 (60%) to White with the remaining going to noncontrolling interest.The income tax rate for both companies is 30%.
-Compute Cody's undistributed earnings for 2009.

• A)$62,500.
• B)$125,000.
• C)$87,500.
• D)$100,000.
• E)$70,000.

---

Definitions:

Nursing Care Plan

A written guide created by nurses for the management of a patient's specific healthcare needs.

Impaired Verbal Communication

Difficulty in expressing thoughts and needs effectively through spoken language, which can be due to various reasons including physical, cognitive, or psychological barriers.

Motor Control

The ability of the nervous system to coordinate muscle movement and maintain balance.

Writing Board

A flat surface, often framed, on which one writes or attaches notices.