Solution-What deferred income tax liability arising

What deferred income tax liability arising

Assignment Help Accounting Basics

Reference no: EM131759892

Question: 1. Reggie, Inc. owns 70 percent of Nancy Corporation. During the current year, Nancy reported earnings before tax of $100,000 and paid a dividend of $30,000. The income tax rate for both companies is 30 percent. What deferred income tax liability arising in the current year must be recognized in the consolidated balance sheet?

A. $1,680.

B. $2,400.

C. $1,470.

D. $9,800.

E. $2,940.

2. Pear, Inc. owns 80 percent of Apple Corporation. During the current year, Apple reported earnings before tax of $400,000 and paid a dividend of $120,000. The income tax rate for each company is 40 percent and separate tax returns are prepared. What deferred income tax liability arising this year must be recognized in the consolidated balance sheet?

A. $0.

B. $7,680.

C. $17,920.

D. $38,400.

E. $51,200.

Reference no: EM131759892

Questions Cloud

Promotions for small business : M3A2 - Promotions for Small Business and prepare and submit the term paper whose topic and outline were approved by your instructor in Module

Explain the importance of encryption : Suppose an executive-level manager asked you to explain the importance of encryption. Any current topic or article related to penetration techniques.

Compute white deferred income taxes : White Company owns 60% of Cody Company. Separate tax returns are required. For 2012, White's operating income (excluding taxes and any income from Cody).

Write a program to show that your program ran correctly : Write a program to show that your program ran correctly. Here is your sample test data to use with your program. This is to be typed in as user input.

What deferred income tax liability arising : Reggie, Inc. owns 70 percent of Nancy Corporation. During the current year, Nancy reported earnings before tax of $100,000 and paid a dividend of $30,000.

Pre-commissioning expenses of a plant and equipment : If it was known that capital expenditures are for fixed assets by default expected to be productive assets in the long run such as leasehold land improvements.

Why should managers be concerned with informal networks : How can informal networks be utilized in the context of managerial interviewing - The uses of informal and formal networks in managerial business communication

What other factors should three rivers consider : What other factors should Three Rivers consider in deciding whether to purchase the new computer system

Does this penalty seem justified : Patricia Young, now 48, was arrested in 1992 when one of her eight children was charged with growing marijuana on a neighbor's property in Mississippi.

User Account

All Pages

What deferred income tax liability arising

Reference no: EM131759892

Reference no: EM131759892

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT