Marc, Inc., owns 75 percent of SRS Company. During the current year, SRS reported net income of
Question:
Marc, Inc., owns 75 percent of SRS Company. During the current year, SRS reported net income of $415,000 but paid a total cash dividend of only $110,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 40 percent.
a. $25,380
b. $18,300
c. $22,140
d. $41,340
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B Equity income 75 of 415000 Dividend income 75 o...View the full answer
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Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
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