Dean, Inc. owns 90% of Ralph, Inc. During the current year, Dean sold merchandise costing $80,000 to Ralph for $100,000. At the end of the year, 30% of this merchandise was still on hand. The tax rate is 30%.Assuming that a consolidated income tax return is being filed, what deferred income tax asset is created?

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The Answer of Dean, Inc. owns 90% of Ralph, Inc. During the current year, Dean sold merchandise costing $80,000 to Ralph for $100,000. At the end of the year, 30% of this merchandise was still on hand. The tax rate is 30%.Assuming that a consolidated income tax return is being filed, what deferred income tax asset is created?

Dean, Inc Owns 90% of Ralph, Inc