Reggie, Inc. owns 70 percent of Nancy Corporation. During the current year, Nancy reported earnings before tax of $100,000 and paid a dividend of $30,000. The income tax rate for both companies is 30 percent. What deferred income tax liability arising in the current year must be recognized in the consolidated balance sheet?
 
 

A.

$1,680.

 

B.

$2,400.

 

C.

$1,470.

 

D.

$9,800.

 

E.

$2,940.

Answer rating: 100% (QA)

Answer1680 Net income of NancyEBIT 100000 Less Tax at 30 30000 After tax n... View the full answer