Kyle, Inc., owns 75 percent of CRT Company. During the current year, CRT reported net income of

Question:

Kyle, Inc., owns 75 percent of CRT Company. During the current year, CRT reported net income of $425,000 but paid a total cash dividend of only $105,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 21 percent.

a. $23,520

b. $17,640

c. $34,440

d. $50,400

Fantastic news! We've Found the answer you've been seeking!