Question: Kyle, Inc., owns 75 percent of CRT Company. During the current year, CRT reported net income of $400,000 but paid a total cash dividend of only $56,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 21 percent. a. $22,803. b. $26,043. C. $18,963. d. $42,003.
Question: Kyle, Inc., owns 75 percent of CRT Company. During the current year, CRT reported net income of $400,000 but paid a total cash dividend of only $56,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 21 percent. a. $22,803. b. $26,043. C. $18,963. d. $42,003.
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 1BCRQ
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Transcribed Image Text:Question: Kyle, Inc., owns 75 percent of CRT Company. During the current year, CRT reported net income of
$400,000 but paid a total cash dividend of only $56,000. What deferred income tax liability must be recognized
in the consolidated balance sheet? Assume the tax rate is 21 percent.
a.
$22,803.
b. $26,043.
C. $18,963.
d. $42,003.
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Author:
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Publisher:
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