Taxation as consolidated company. On May 1, 2016, Tole Company acquires a 80% interest in Marco Company for $400,000. The fair value of the NCI is $100,000. The following determination and...

Taxation as consolidated company. On May 1, 2016, Tole Company acquires a 80% interest in Marco Company for $400,000. The fair value of the NCI is $100,000. The following determination and distribution of excess schedule is prepared:

Goodwill, applicable to the parent’s interest ($80,000), will be amortized over 15 years for tax purposes only.

Tole Company and Marco Company have the following separate income statements for the year ended December 31, 2018:

During 2018, Marco Company pays cash dividends of $25,000. Prepare the entry to record income tax payable on each company’s books. Assume a 30% corporate income tax rate.