7 Assignment i Jay Inc. owns 80% of Tesla Inc and uses the cost method to account for its investment The 2020 income statements of both companies are shown below Jay $100.000 $30.000 Tesla $50.000 $20,000 Gross Profit Miscellaneous Revenues/Losses Depreciation Expense Income Tax Expense Net Income $20,000 $20,000 $15.000 $6.000 $ 9.000 On January 1 2020 Tesla sold equipment to Jay at a profit of $3.000. The equipment had a remaining useful life of twenty years on that date. Both companies are subject to an effective tax rate of 40% The amount of deferred taxes appearing on Jay's 2020 Consolidated Statement of Financial Position would be M oe Choice Multiple Choice 0 $1,140 0 $2550 0 O $1000 Prey 1 7 Assignment i Jay Inc. owns 80% of Tesla Inc and uses the cost method to account for its investment The 2020 income statements of both companies are shown below Jay $100.000 $30.000 Tesla $50.000 $20,000 Gross Profit Miscellaneous Revenues/Losses Depreciation Expense Income Tax Expense Net Income $20,000 $20,000 $15.000 $6.000 $ 9.000 On January 1 2020 Tesla sold equipment to Jay at a profit of $3.000. The equipment had a remaining useful life of twenty years on that date. Both companies are subject to an effective tax rate of 40% The amount of deferred taxes appearing on Jay's 2020 Consolidated Statement of Financial Position would be M oe Choice Multiple Choice 0 $1,140 0 $2550 0 O $1000 Prey 1