Reggie, Inc. owns 70 percent of Nancy Corporation. During the current year, Nancy reported earnings before tax
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Question:
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. |
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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