Question
The Acadia Corporation owns 70% of Biscayne Corporation. During 2012 Biscayne paid $60,000 dividends and had net income of $180,000. The tax rate is 40%.
The Acadia Corporation owns 70% of Biscayne Corporation. During 2012 Biscayne paid $60,000 dividends and had net income of $180,000. The tax rate is 40%. What deferred tax liability should be recognized on the consolidated balance sheet?
| -0- | ||
| $16,800 | ||
| $9,600 | ||
| $6,720 | ||
| None of the answers is correct |
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
1118334329, 978-1118334324
