Question: Kyle, Inc., owns 75 percent of CRT Company. During the current year, CRT reported net income of $400,000 but paid a total cash dividend of only $56,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 21 percent. a. $22,803. b. $26,043. C. $18,963. d. $42,003.

Question: Kyle, Inc., owns 75 percent of CRT Company. During the current year, CRT reported net income of $400,000 but paid a total cash dividend of only $56,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 21 percent. a. $22,803. b. $26,043. C. $18,963. d. $42,003.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 7P

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