Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period, the two companies individually reported the following income (exclusive of any investment income): Lake $ 387,000 Boxwood 129,000 Lake paid a $50,000 cash dividend during the current year and Boxwood distributed $12,000. Boxwood sells inventory to Lake each period. Intra-entity gross profits of $15,200 were present in Lake's beginning inventory for the current year, and its ending inventory carried $32,200 in intra-entity gross profits. View each of the following questions as an independent situation. The effective tax rate for both companies is 40 percent. If Lake owns a 60 percent interest in Boxwood, what total income tax expense must be reported on a consolidated income statement for this period

Adog whistle manufacturer's factory was located near a residential area. the manufacturer used the most effective methods for testing its whistles, but it was impossible to completely soundproof the testing area. a breeder of champion show dogs bought some property near the factory and raised and trained her dogs there. although the whistles were too high-pitched to be perceived by human ears, they could be heard by the breeder's dogs. consequently, the dogs often were in a constant state of agitation. in a suit by the breeder against the manufacturer, what is the likely outcome? response - correct a the breeder will prevail on a trespass theory, because the sound waves are entering onto the breeder's property. b the breeder will prevail on a nuisance theory, because the sound of the whistles is a substantial interference with the breeder's use of her land. c the breeder will not prevail, because the sound of the whistles is not a substantial interference with the breeder's use of her land. d the breeder will not prevail, because the manufacturer has acted reasonably in testing its whistles.