2. [Tax] Pop Corporation uses the equity method to account for its 25% investment in Son Corporation.
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2. [Tax] Pop Corporation uses the equity method to account for its 25% investment in Son Corporation. During 2016, Pop received dividends of $60,000 from Son and recorded $360,000 as its equity in the earnings of Son. Additional information follows:
■ The dividends received from Son are eligible for the 80 percent dividends-received deduction.
■ There are no other temporary differences.
■ Enacted income tax rates are 30 percent for 2016 and thereafter.
In its December 31, 2016, balance sheet, what amount should Pop report for deferred income tax liability?
a $18,000 b $21,600 c $90,000 d $108,000
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Related Book For
Advanced Accounting
ISBN: 9781292214597
13th Global Edition
Authors: Joseph H. Anthony, Bruce Bettinghaus, Floyd A. Beams, Kenneth Smith
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