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Pike, Inc., owns 75 percent of Stark Company. During the current year, Stark reported net income of $545,000 but paid a total cash dividend of
Pike, Inc., owns 75 percent of Stark Company. During the current year, Stark reported net income of $545,000 but paid a total cash dividend of only $120,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 34 percent. |
$28,755.
$21,675.
$25,515.
$44,715.
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