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  3. since this date the following events have occurred

Since this date the following events have occurred:Year 3 Y Co. reported a net income...

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Accounting

Since this date the following events have occurred:Year 3 Y Co. reported a net income of $177,000 and paid dividends of $45,000. On July 3, X Co. sold land to Y Co. for $152,000. This land was carried in the records of X Co. at $95,000 On December 31, Year 3, the inventory of X Co. contained an intercompany profit of $50,000. X Co. reported a net income of $600,000 from its own operations.Year 4 Y Co. reported a net loss of $36,000 and paid dividends of $8,000. Y Co. sold the land that it purchased from X Co. to an unrelated company for $177,000. On December 31, Year 4, the inventory of Y Co. contained an intercompany profit of $32,000. X Co. reported a net income from its own operations of $92.000Required:Assume a 40% tax rate.

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