Pike, Inc., owns 60 percent of Stark Company. During the current year, Stark reported net income of $200,000 but paid a total cash dividend of only $40,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 30 percent.
a. $5,760.
b. $9,600.
c. $12,840.
d. $28,800.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.