Solution-What deferred income tax asset amount is created

What deferred income tax asset amount is created

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Question - Plumas, Inc., owns 80 percent of Santa Cruz Corporation. Both companies have been profitable for many years. During the current year, the parent sold for $187,500 merchandise costing $145,000 to the subsidiary, which still held 30 percent of this merchandise at the end of the year. Assume that the tax rate is 40 percent and that a consolidated tax return was filed. What deferred income tax asset amount is created?

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What deferred income tax asset amount is created

Reference no: EM132540637

Reference no: EM132540637

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