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On January 1, 2021, Blossom Corp purchased 30% of the voting common stock of Betz, Inc. and appropriately accounts for its investment by the equity

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On January 1, 2021, Blossom Corp purchased 30% of the voting common stock of Betz, Inc. and appropriately accounts for its investment by the equity method. During 2021. Betz reported earnings of $1700000 and paid dividends of $500000, Blossom assumes that all of Betz's undistributed earnings will be distributed as dividends in future periods when the enacted tax rate will be 20%. Ignore the dividend received deduction, Blosson's currentenacted income tax rate is 15%. The increase in Blossoms deferred income tax ability for this temporary difference is $240000 $180000 588000 $72000

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