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Marc, Inc., owns 65 percent of SRS Company. During the current year, SRS reported net income of $130,000 but paid a total cash dividend of
Marc, Inc., owns 65 percent of SRS Company. During the current year, SRS reported net income of $130,000 but paid a total cash dividend of only $35,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 30 percent.
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