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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3befaaea-bd9f-4c03-a147-b6da27e41433%2Fce299466-ffbd-4b73-9ce4-be0d770ea99b%2Fra56yv4_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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